Standard EF1: limited resources and unlimited wants and needs.

• Scarcity influences the choices made about spending money because your wants and needs are unlimited by how much money you have to spend. I had to make a trade-off once when I had to pay my band dues. I could have used that money to get my hair done but I chose to pay my dues. I told myself that I could get my hair done anytime, but right now I have to pay my dues in order to get my performance uniform. Afterwards I felt relieved, my due not getting paid was weighing heavy on me, so once I got them out of the way nothing else really mattered


• A business owner influences the four factors of production because in order to start a business, an owner needs a building (land), they also need employers (labor), and materials (capitol) and the business owner is the entrepreneur. Business owners can come into controversy with their employers and financial problems and the rewards come from them being in the right spot so that they can get a lot of service.

• I believe that I can see myself as a laborer and an entrepreneur. I have to build my leadership skills by working as an employer first in order to make my way to owning a business.

•

This is an example of scarcity. In this picture the man is deciding which doctor to

The man in the picture has run out give up for the other. So this is an example of

of money and needs a loan to opportunity cost.

get what he wants and needs.

• I feel that I know this standard pretty well. I really don’t have any questions either.

Standards EF2 and EF3- productions possibilities curve; rational decision making; and specialization.

 If I owned a business a PPC would tell me all possible production possibilities for two products.


 growth and increasing of production would cause my PPC shift outward

 the best way to determine whether or not we are making a rational economic decision is by seeing if the marginal benefits exceeds the marginal costs

 Companies choose to specialize and trade because they have a comparative advantage. Also division of labor increases production, profit and trade. If companies didn’t specialize then production, profit, and trade would decrease.

 I feel that I really grasp this concept. Two things that confuse me however is comparative advantage and marginal benefits exceeding marginal costs. When I answer questions about those two things my mind is a little shaky