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وهذي شرح آلصفحه 3


Economics
Page 3
Chapter 1
Two Big Economic Question…
Choies determining what , how ,and for whom goods and services are produced.
What ,how ,and for whom ??
Goods and services…
Are the objects that people value and produce to satisfy human wants(needs)
Goods..are physical objects sush as cell phons ,food,chair,golf bals…..ect
Services..are tasks performed for people such as cell phons services,haircating, health car..…ect

What to produce….?
As a result of scarcity we must choose what to produce….
A)that means choosing need that must be satisfied …
B)choices depond on incentives…
C)prices and profits are important incentives in free economy…

How to produce…?
Goods and services are produced by using productive resources that economists call
(factors of production)

Factors of production…
A)land
B)labor
c)capital
E)entrpreneurship

Land…the nature that we use to produce good and services …
Ex..
Oil,Coal,water, are ..ect

Our land surface and water resources are renewable and some of mineral resources can recycled But the resources that we use to create energy are nonrenewable they can be used only once…


Labor… the work time and work effort that people devort to producting goods and services …

The quality of labor depends on human capital which is the knowledge and skill that people obtain (gain) from educarion , and work experience…

Human capital expands over time…
Capital … the tools , machines , building, and other construction that businesses use to produce goods and services…

Financial capital…we talk about mony , stocks , and bonds as beig (capital)

Entrepreneurship…the human resource that organizes labor, land , and capital…

For whom to produce…?
Goods and services that are depends on incoms that people earn

Large incoms ……large option …..large quantities
Small incoms….. small option…small quantities

People earn their incomes by selling the services of the factors of production they own..
A)land earn rent
B)labor earn wages
C)capital earn interest
E)Entrepreneurship