Lesson 1 Introduction To Economics

Lesson 1
Introduction to Economics
Welcome to Lesson 1!

In this lesson, you will understand Scarcity and the World of Trade-Offs. You will also understand Supply and Demand.

The lesson is the “class” portion of the class. This is where you will put into action all that you have learned from the discussion and task. Are you ready to begin?

Since this is our first lesson, let’s take a tour of the course. Then go through the discussion, task, and lesson.

Using Microsoft Word, write a 1 – 2 page paper on the following questions:

1. List the five factors of production.

2. Define and differentiate between Positive Economics and Normative Economics.

SAMPLE SOLUTION

Factors of production
The factors of production are inputs required for supply and include land, labour, capital, money and entrepreneurship. They help in the creation of products and services in an economy measured, which is measured by gross domestic product. Land as a factor of production is limited to all-natural assets available to create the supply. These resources are gifts by nature, and they include water, natural gas, among others. However, these resources are either renewable or non-renewable (Baddeley, 2017).
Labour is explained as work completed by individuals. The employees’ value depends on education levels, abilities, productivity, and motivation. In that case, the greater the labour quality, the greater the employees’ productivity. Capital is the other factor of production, which involves…