5 Questions About Economics!

What is the difference between a good and a service?
a good is a physical object.....a service is something you do for somebody or somebody does for you and an example would be like Pay me $5 and I give you a broom. You just bought a Good. Pay me $5 and I will sweep your room. You just bought a Service

Why is the idea of scarcity a starting point for economic thinking?
Because Scarcity implies choices. The whole study of economics is a study of maximizing under constraints. Resources in the world are finite, but human wants are virtually unlimited, which makes resources scarce. So how do we maximize the demands of human wants and needs with limited resources?

How is scarcity different from shortages?
Scarcity refers to the fact that for any resource, there's a finite number of whatever it is relative to the aggregate wants and desires of society as a whole. Shortages refers to a situation in which the price of something is made to be artificially low, so the amount demanded is much greater than the amount supplied

Describe the three factors of production.
1. Land
2. Labor
3. Capital

What role do entrepreneurs play in the economy?
They can contribute to the economy in a number of ways. For example, many help to bring new technologies to the market. Steve Jobs, the founder of Apple Computers brought us the Mac and iPod. Bill Gates helped to bring Windows to life. And that led to the creation of a bizillion other software programs that needed Windows in order to run.
Entrepreneurs can also create businesses that hire people. So it helps stimulate the economy by providing consumer income. Income that consumers will go out and spend.
The businesses created by entrepreneurs provide tax revenue to local, state, and/or the federal government. Tax dollars that are used to provide a wide range of important services--transportation, healthcare, education, construction.