Economics Unit 1 Review Guide What causes scarcity?

What are the factors of production? Give examples.

How does the USA decide what to produce?

What is the effect of supply and demand on the cost of a good?

Know how to read a Production Possibility Curve.

The causes of scarcity can be due to a number of different reasons, but there are four primary ones. Poor distribution of resources, personal perspective on resources, a rapid increase in demand, and a rapid decrease in supply are all potential scarcity causes.

Step-by-step explanation:

In economics, factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship

The government decides the means of production and owns the industries that produce goods and services for the public. The government prices and produces goods and services that it thinks benefits the people. ... The government allocates its resources based on these objectives and is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services.

1)is not similar since corresponding sides are not in the same ratio

2)are similar since corresponding sides are in the same ratio and corresponding angles are equal

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