AP Macroeconomics / Unit 1: Basic Economic Concepts
1.1 Scarcity
Notes
Scarcity: unlimited wants but limited resources, so choices must be made.
- Factors of production: land, labor, capital, entrepreneurship.
- Positive statements can be tested; normative statements are opinions.
Practice
Which is a factor of production?
Inputs used to make goods.
"The minimum wage should be raised" is:
A value judgment.
Scarcity exists because:
The basic economic problem.
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