In this chapter, you will learn to solve these economic puzzles: How can we explain the relationship between the Super Bowl winner and changes in the stock market? Why would you purchase more Coca-Cola when the price increases? Can you prove there is no person worth a trillion dollars? | Chapter 1 Introducing the Economic Way of Thinking Key Concepts Summary Practice Quiz Internet Exercises ©2000 South-Western College Publishing * In this chapter, you will learn to solve these economic puzzles: Can you prove there is no person worth a trillion dollars? Why would you purchase more Coca-Cola when the price increases? How can we explain the relationship between the Super Bowl winner and changes in the stock market? * What is the Economic Problem? Providing for people’s wants and needs in a world of scarcity * Return to previous slide while in slide show * What is meant by Scarcity? The condition in which wants are forever greater than the available supply of time, goods, and resources * What does Scarcity force us to do? It forces us to make choices * What are Resources? The basic categories of inputs used to produce goods and services * What are the three categories of Resources? Land Labor Capital * What is a Land Resource? A shorthand expression for any natural resource provided by nature * What is Labor? The mental and physical capacity of workers to produce goods and services * What is Capital? The physical plants, machinery, and equipment used to produce other goods * What is Financial Capital? The money used to purchase capital * What is Entrepreneurship? The creative ability of individuals to seek profits by combining resources to produce innovative products * Land Labor Capital Entrepreneurship organizes resources to produce goods and services * What is Economics? The study of how society chooses to allocate its scarce resources to the production of goods and services in order to satisfy unlimited wants * What is Macroeconomics? The branch of economics that studies decision-making for the economy as a whole * What is Microeconomics? The branch of economics that studies decision-making by a single individual, household, firm, industry, or level of government * What is . | Chapter 1 Introducing the Economic Way of Thinking Key Concepts Summary Practice Quiz Internet Exercises ©2000 South-Western College Publishing * In this chapter, you will learn to solve these economic puzzles: Can you prove there is no person worth a trillion dollars? Why would you purchase more Coca-Cola when the price increases? How can we explain the relationship between the Super Bowl winner and changes in the stock market? * What is the Economic Problem? Providing for people’s wants and needs in a world of scarcity * Return to previous slide while in slide show * What is meant by Scarcity? The condition in which wants are forever greater than the available supply of time, goods, and resources * What does Scarcity force us to do? It forces us to make choices * What are Resources? The basic categories of inputs used to produce goods and services * What are the three categories of Resources? Land Labor Capital * What is a Land Resource? A shorthand .
