16633 Chapter Notes - Chapter 1: Ceteris Paribus
Document Summary
The condition in which human wants are forever greater than the available supply of time, goods, services and resources. Because of the economic problem of scarcity, no society has enough resources to produce all the goods and services necessary to satisfy all human wants. Economists divide resources into three categories: land, labour and capital. Includes anything natural above or below the ground forests, minerals, oil, wildlife, rivers, lakes and oceans. The mental and physical human capacity of workers to produce goods and services. Examples: services of farmers, factory workers, lawyers, professional football players and economists. The physical plant, machinery and equipment used to produce other goods. They are human-made goods that do not directly satisfy human wants. It simply gives a measure of the value of assets, including capital goods. Entrepreneurship is the creative ability of individuals to seek profits by combining resources to produce new or existing products. Microeconomics: studies decision-making by a single individual, household, firm or industry.
