Ch.1+notes&hw

1.1 Notes A need is something like air, food, or shelter that is necessary for survival. A want is an item that we desire but that is not essential to surveil. Because people cannot have everything they need or want, cannot have everything they need or want, they must consider their options and decide which choice will fill their needs best.Economics is the study of how people seek to satisfy their needs and wants by making choices. Living in a relatively wealthy country, many americans may find it hard to understand the idea of scarcity. Goods are physical objects such as shoes and shirts. We have access to countless services. Services are actions or activities that one person performs for another. All of the goods and services we produce are scarce. Scarcity implies limited quantities if resources to meet unlimited wants. Scarcity is not the same as a shortage. A shortage occurs when producers will not or cannot offer goods or services at the current prices. Factors of production are land, labor, and capital. The three groups of resources that are used to make ll goods and services. Economists use the term land to refer to all natural resources used to produce goods and services. Labor is the effort that a person devoted to a task for which that person is paid. Capital is any human-made resource that is used to produce other goods and services. Human made objects used to create other goods and services are called physical capital. Human capital is the knowledge and skills a worker gains thorough education and experience. entrepreneurs are amities leaders who decide how to combine land, labor, and capital resources to create new goods or services.

1.2 Notes Trade-offs are all the alternatives that we give up whenever we choose one course of action over another. Individual trade offs, choosing to play soccer may prevent you from working a part time job. Business tradeoff, a manufacture who decides to use all her equipment to build chairs elements the possibility of building ables or desks at the same time. Society and trade-offs, (guns or butters) A country that decides to produce more military goods(guns) has fewer resources to devote to consumer goods(butter) and vice versa. The most desirable alternative given up as the result of a decision is called opportunity cost. if a family buys a computer, family members cannot use the same money to ay for their second choice, going on a trip. Using a decision making grid-like the one on Thinking at the margin, is deciding whether to do or use one additional unit of some resource. To understand what it means to think at the margin you might picture a piece of paper with a line darn down the left side. 1.3 Notes When the wonted states entreated world war in 1941, it faces an urgent task to create the weapons and equipment needed to win the war or face defeat. Government agencies took lead in switching the output of americas factories, farms, and mines from the production of consumer products to the production of military products. A production possibilities curve, or graph, shows alternative ways to use an economies productive resources. The axes of the graph can show categories of goods and services, such as farm goods and factory goos or capital goods and consumer goods. The line on a production possibilities graph that shows the maximum possible output. Any spot on that line presents a point at which cape land is using all of its resources to price maximum combination of those two products. Production possibilities show how efficient an economy is, whether an economy has grown or shrunk, and the opportunity cost of a decision to produce more of one good or service. Efficiency is using resources in such a way to maximize the production of goods and services. Underutilization is using fewer resources than an economy is capable of using. When the economy grows they say it has shifted to the right. The law of increasing sots states that as production switches from one item to another, more and more resources are necessary to increase production of the second item. Therefore the opportunity cost increases. A countries production possibilities depend on both its technological level and the resources it has available.

Pg. 6 Questions 1-10 3. Shortages occurs when producers will not or cannot offer goods or services at the current prices. 4. The three factors of production are, land, labor, and capital. 5.The special advantages that physical capital offers is, that it includes buildings tools and it also saves people money and a great amount of time. 6. Entrepreneurs share to the economy by being the ones to decide hot to combine land, labor, and capital resources to create new goods and services. They are the ones that are making the economy strive and i this is helping the government so in that case the government should be helping out these business starters instead of bringing them down with all of he charges that they are being dealt with. 7. An economist might look at hundreds of cars moving up an assembly line and say that its an example of scarcity because the fact that most cars aren't able to be produced because of money shortages but yet all of the car dealerships are coming up with new models and are using all of their resources. 8.The factor of production is represented by each o the following by, an office building having to be able o operate. The assembly line is a line of workers that work together in order to get their work out more efficiently. A tree is used to make paper is making the trees become shortages. Unused soil is being put to waste when there are hundreds of possibilities to use them for. An artist might be drawing pictures that don't have any significance they can help others that don't have their artistic capabilities and that why they have money to start there own projects. A student make look at all the factors of production by, being struck by all others. 9. In terms of land, labor and capital you would first need to make sure that you have capital because they are the ons that are supplying you with money, o you first need that n order to buy you land once you have your land you will be able to employee people and be able to allow them to work on your land. 10.No, a capital will not always guarantee your money back. When you are getting capital you are receiving a loan. That loan must be paid off if your business is doing well then you wont have to get it back, but you will need to be sure that your capital will help you and not screw you over.
 * 1) The difference between a good and service is that a good is,a physical on=object, such as a shirt and shoes. And a service is an actions or activities that in person performs for another.
 * 2) The idea of scarcity as a starting point for thinking economically is, that it impulses limited quantities of resources to meet unlimited wants.

Pg. 11 Questions 1-6, 8, 9 1. Individual tradeoffs, choosing to play soccer may prevent you from working a part time job. Business tradeoff, a manufacture who decides to use all her equipment to build chairs elements the possibility of building able or desks at the same time. Society and trade-offs (guns or butters) a country that decides to produce more military goods (guns) has fewer resources to devote to consumer goods (butter) and vice versa. The most desirable alternative given up as the result of a decision is called opportunity cost. 2. You go through this every day; you have to give something up in order to achieve doing something else. Such as, if a family buys a computer, family members cannot use the same money to pay for their second choice, going on a trip. 3. Society and trade-offs (guns or butters) a country that decides to produce more military goods (guns) has fewer resources to devote to consumer goods (butter) and vice versa. 4. Thinking at the margin, is deciding whether to do or use one additional unit of some resource. 5. If you are going to save 40$ on a car and it already includes gas rate then it would be a smart idea, although if you want to go all mentally smart and say you will have to pay for the gas on the new car, and maybe you will be so far off you will have to make more roads then freeways then, no. But I’d say it would save you 40$ and well in these tough times that a lot. 6. Eating pizza you would be willing to sacrifice time to go and work it off at the gym. When you go see a movie on a Tuesday you have to give up seeing it on a Friday. When you see a movie on a Saturday you have to sacrifice buying more unnecessary food. When you’re watching television you sacrifice studying time. 8. The opportunity cost of working after school is risking your grades. When you have to go to work and juggle school at the same time it can be very demanding and could potentially be a huge distraction. When you have so many hours you will be getting paid a lot, but your grades won’t be looking as good as your paycheck. 9. An employer should look into if the person that is already working is going to need some days off. Also what the other workers schedule is, so that way you can be sure to schedule them according to their schedule. When I organize someone’s schedule I adjust it to their life, or else they will leave me hanging by myself on a busy day because something they obviously already knew was gig to happen, happened, but they didn't want to sati because they wanted to act surprised.

Pg. 18 Questions 1-6 1. Underutilization is depicted on a production possibilities frontier by; using fewer resources than an economy is capable of using. 2. The production possibilities curve illustrates how the economy is by; when the economy grows they say it has shifted to the right. So this would usually be best illustrated on a graph. it shows the alternative ways to use an economies productive resources. 3. Opportunity cost would be best ill lustrated by, using production possibilities graphs to see the opportunity cost involved in the decision. 4. 1if the number of farms increased in 1950, the productions of the possibilities that curve the factory goods and farm goods have increased. The numbers of farms have dropped to over 2 million in 2000 and in 1950 they were at 5.5 million. The sizes of the farms however have increased. 5. I would illustrate the impact of farms to the following possibilities of production cost by effecting how many of each will be able to be achieved that year. When there is an opportunity cost towards the farms production you will not be getting all of the achievements you would like. When the computer was invented everyone wanted it but now they tend to use that more than paper. The unemployment rate has decreased because of all the advanced technology that doesn’t need for a wide employee base. Droughts tend to effect farms the most because if there are no crops there are no farmers. 6. The specific event that would make each of the following happen to a production possibilities curve is the fact that a state can make about 15 million shoes with their production capabilities, or there can make 21 million tons of watermelons. Now it’s their choice which they decide to choose.

Chapter 1 Review Pg 20 1-7 9-16 1. Economist defines scarcity as limited quantities that meet unlimited wants. 2. All decisions involve, opportunity cost because we must give up some alternatives when we choose certain coerces of action. 3. The term, land refers to all natural resources that are used to produce gods and services. 4. Economists use the phrase, “Guns or butter” to describe the tradeoffs a country is forced to make when choosing between military and consumer production. 5. An opportunity cost is the most important results in making a decision. 6. A person who starts a new business or develops a new idea is known as an entrepreneur. 7. Efficiency of resources occurs when an economy uses fewer resources than it is capable of expending. 9. The fact that people are running out of the production possibilities and money each term of the following effect each other. If there is no land there is no labor and if there is no capital there is no land. 10. The president of the United States may say that he is going to use a trade off of guns or butter. He would typically pick guns instead of butter because he needs a strong military to protect the united sates. The top one percent might say that scarcity might affect them if they run out of materials that’ makes them be that one percent. The income of the bottom percent may say that the scarcity of jobs is what is affecting the way they live. 11. The three major things we learn when reading the graph is, efficiency, growth, and cost. 12. The law of increasing cost is best seen as, that as production switches from one item to another, more and more resources are necessary to increase production of the second item. 13. Physical capital is, Human made objects used to create other goods and services are called physical capital. Railroads did affect the physical capital because it was able to increase the amount of new goods and services. 14. Three services that a government provides to a citizen are, allowing them government jobs. They may be part of the city jobs, and any other public job that is paid by the government. 15. I would agree with the economists view, when an entrepreneur comes up they are able to create all of the following terms and with that they can create infinite amounts of work and make the economy strive increasingly. 16. I had the opportunity to either go to sleep late and watch jersey shore but instead I finished all of my homework. I also had the chance to wake up early or just sleep in; I ended up coming to first period. Yesterday I had the opportunity to ditch all of my classes but now that I didn’t I realized we had a quiz in one of my classes and now I am sure I passed.