Fundamental Economic ConceptsFundamental Economic Concepts

ScarcityScarcity

The most basic of all economic problems. The problem of unlimited human needs and limited productive resources.

EconomicsEconomicsThe study of how people use limited resources to produce and exchange for the goods and services they need.

Or quite simply…

How we choose to

deal with the

problem of

scarcity.

Goods and ServicesGoods and Services

• Free Good (abundant)- the quantity supplied exceeds the quantity demanded.

Free GoodsFree Goods

The Factors of ProductionThe Factors of Production

Natural Resources

Human Resources

Capital Resources

Entrepreneurship

Natural Natural ResourcesResources

Human Human ResourcesResources

Capital ResourcesCapital Resources

This differs from

financial capital.

EntrepreneurshipEntrepreneurship

APG EXAM Scores

Because of Scarcity, Choices Must be Made

Economics Includes:

AND