Economics problems is how to allocate scarce resources among alternative uses.
Take a choice about what you are going to spend money on.
For ex: Decisions firms have to take about what they should produce and how they could do this in the most efficient way, in contrast to their budget.
Different factors of production, which is the resource inputs that are available in an economy for the production of goods and services, as economic resources: land, labour, factor, entrepreneurship.
Land: Natural resources available, from the earth, and fossil fuels, like oil and cool.
Labour: Human resources available in any economy. Quantity and quality are key considerations.
Capital: Physical resource covering anything that can be regarded as a man-made aid of production. A combination by land and labour to produce things and services, everything you can built.
Entrepreneurship: the willingness of an entrepreneur to take risks and organise production. Entrepreneurs(individuals who have an idea, developing by setting up a new business and encourage it to grow), starting up entreprices(a business, the process by which new businesses are formed)
Specialisation used to address the problem of scarcity is done by individuals workers, regions, firms, or economies. They are only concentrated on doing especially tasks, producing some goods or services.
Exchange(:the process by which goods and services are traded) of goods or services, where you give something and get something of an equivalent value back, like in the olden days...
Market in allocating scarce resources = a market with insufficient resources to meet all want..
Opportunity cost, the cost of the next best alternative, which is forgone when a choice is made.
Ex: Dragon's Den is a television program, where The Dragons (investors) chose if they want to invest in the idea the participants are coming up with. If they investing in it, they lose the opportunity to invest in something else, and if their not investing the participants will maybe get another investor and might succeed on the market. Then the first investor who said no to invest, lost that opportunity to earn money and be fame.
Production possibility curves: this shows the maximum quantities of different combinations of output(=the finished products resulting for the transformation process) of two products, given current resources and the state of tecnology.
Ex:
Opportunity cost:
Take a look at the diagram in the picture above. If you choose to work more with maths, than economics, you use more time on maths, and less on economics → better grades in maths than economics. Visa Versa.
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