Section 1: Economics Review

Profit = Revenue - Cost

Books, cars, jeans are all items produced for consumers.

What is the unit cost of 50 trucks at $820,000?

Raw materials, such as forests, animals and minerals. All used in production.

The event of unlimited wants but limited resources.

Calculate the unit cost for paper towels: 12 rolls for $7.99

Things people must have in order to survive. The essentials.

Revenue - cost = ______________. What you make after costs.

This is a human resource. The nation's workforce. Used in production.

Manufactured goods that produce other goods, such as a coffee machine or table saw to cut wood. A factor of production.

A person who takes a risk and starts a business. One of the 4 factors of production.

A waiter pouring you a glass of lemonade is an example of a service.

Work performed for someone else. Example: to assist them at a restaurant or mechanic shop.

Unit cost is the cost of a single item, within a package of items.

A haircut is an example of a good.

The study of decision making with time, money, and resources.

Things people do not need to survive. Luxury items.

An entrepreneur has zero risk when trying to start a business.

If the cost to produce 50 trucks is $820,000 and the revenue is $1,200,000, what is the profit?

The cost of the next best use of your time or money. Choosing one thing to do rather than another.