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Basic Economic Problems Explained

This document discusses basic economic problems and concepts. It defines consumption, production, distribution, and growth over time. It explains that scarcity requires individuals and societies to make choices about how to allocate limited resources. The key factors of production are labor, land, and capital. The law of diminishing returns and economies of scale affect production levels as inputs are adjusted.

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Abagar Zyrell
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20 views18 pages

Basic Economic Problems Explained

This document discusses basic economic problems and concepts. It defines consumption, production, distribution, and growth over time. It explains that scarcity requires individuals and societies to make choices about how to allocate limited resources. The key factors of production are labor, land, and capital. The law of diminishing returns and economies of scale affect production levels as inputs are adjusted.

Uploaded by

Abagar Zyrell
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Chapter 2

Basic Economic Problems

Presentor: Zyrell Abagar


Basic Decision Problems
1.
- the using up of goods or
services, either by consumer or
in the production of other
goods.
2.

- the process of making or


growing something for sale or
use.
3. Distribution
- the way that something is
divided or spread out.
4. Growth over time

- involves the choice of what


resources can be spared in the
present in order to produce for
the next period.
Scarcity

- the condition in which


individuals are forced to make
choices among available
alternatives.
Production and Technology:

Law of Scarcity at work


Economic Resources
or Factors
of Production
1. Labor
- is the effort that people
contribute to the production of
goods and services.
2. Land
- any natural resources used
to produce goods and services.
3. Capital
-represented by equipment or
machinery, tool and buildings that
human use to produce goods and
services.
* Increasing resources
and technological
* Law of Diminishing Return
-states that in a
production process, as one input
variable is increased,
there will be a point at which the
marginal per unit
output will start to decrease, holding
all other factors
constant.
* Economies of Scale
- refer to reduced costs per unit
that arise from increased total
output of a product.
References
[Link]
consumption
[Link]
[Link]
lowdown-podcast-series/episode-2-factors-of-production

[Link]
[Link]

[Link]
[Link]
Thank you
and
Have a Glorious Day !

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