Rapid Review: Fundamentals of Economic Analysis

Flowchart nodes

• Fundamentals of Economic Analysis

• Economics

• The study of how

• Firms

• People

• Socities

• Use their scarce resources to best satifsy their unlimited material wants. 

• Resources

• AKA factors of productions

• Labor

• Physical capital

• Land/Natural Resources

• Entrepreneurship

• Scarcity

• Imbalance 

• Limited productive resources

• Unlimited human wants

• Scarce resources imply 

• Individuals

• Firms

• Government

• Faced with difficult choices involving

• Benefits

• Costs

• Goods and services a society produces are scarce as well.