EP1

Ep1-

scarcity- limited recourses cannot satisfy unlimited needs

economics- the study of how to allocate resources to satisfy unlimited needs and wants

2.

wants- computers, Xbox, car

needs- food, water, shelter

3. price- who to produce for

machinery to use- how to produce

what color t-shirts- what to produce.

4. yes

5. land- There are limited resources on earth

labor- limited educated workforce.

capital- not enough machines or inefficient machines.

6. a.

A cinema and a basketball court both have limited space and you have limited time and money to do both things. However you still want to do both things.

B. you want to create more widgets but the scarcity of the limited resource capital and labor are already stretched to the limit.

C. The limited resource here is money. But the want for both roads and perhaps many other things in the country is the wants.

7. Yes, it only studies rational human choices such as allocation of resources as anything else is outside the sphere of study.