1. Factors of Production
1.1. Land
1.1.1. natural resources
1.1.1.1. such as oil, gas..
1.2. Labor
1.2.1. human use their own effort to make things
1.2.1.1. The factory workers use their time and effort to produce things
1.3. Capital
1.3.1. the resources used by human to produce things
1.3.1.1. such as tools, machine..
1.4. entrepreneurship
1.4.1. the skill for running the business
1.4.1.1. To be a boss, we need to have leadership to lead our company.
2. how people make decision
2.1. incentives
2.1.1. the reason that make people want something
2.1.1.1. Many people are using Apple that makes me want to buy it.
2.2. Utility
2.2.1. benefit or not
2.2.1.1. To buy a pen, I can take notes in class.
2.3. cost-benefit analysis
2.3.1. examine the benefit and the cost
2.3.1.1. She doesn't know the action that she is going to take is good or bad, so she wrote down the benefits and cost to compare them.
2.4. opportunity cost
2.4.1. "the things" that people give up
2.4.1.1. He decided to go out with friends. The opportunity cost is the homework because he can't finish it.
2.5. trade-off
2.5.1. Decision: two things but can only choose for one
2.5.1.1. forty dollars for buying food or pen
3. economics
3.1. how people choose to buy the stuff to satisfy their wants and how people decide to do something.
3.1.1. People need to know between needs and wants to choose to buy their stuff.
3.2. scarcity
3.2.1. the "situation" that the resources are not enough for people to buy to satisfy their wants
3.2.1.1. When the iPhone 7 just come out, many people want it, but there is no enough resource
3.2.2. Determine
3.2.2.1. wants
3.2.2.1.1. people are happy about buying stuff
3.2.2.2. needs
3.2.2.2.1. the things that are used for survival
4. scarcity affects..
4.1. producer
4.1.1. the maker
4.1.1.1. Young made a computer, so Young is the producer
4.2. consumer
4.2.1. a person who buy goods
4.2.1.1. Jason bought a cellphone, so Jason is the consumer
4.3. goods
4.3.1. the things that are bought by consumers
4.3.1.1. there are many goods in the department store such as food, clothing...
4.4. services
4.4.1. a person who works for others
4.4.1.1. the waiter serves food in the restaurant
5. Economic System
5.1. Traditional System
5.1.1. roles same as parents and grandparents
5.1.1.1. habit or custom decides
5.1.1.1.1. Advantages: less destructive, production of goods for people's survival
5.1.1.1.2. Disadvantages: vulnerable, capability to change
5.2. Command System
5.2.1. decision maker is government
5.2.1.1. decided by government
5.2.1.1.1. Advantages: resources are made quickly, success for whole not just one.
5.2.1.1.2. Disadvantages: the amounts of goods not balance, needs of society being ignored
5.3. Market System
5.3.1. Free enterprise system
5.3.1.1. result by Buyers and Sellers
5.3.1.1.1. decided by individuals or companies