Tutorial 3.pptx, principles of economics

principles of economics

1. Principles of Economics The Economic Problem Tutorial 3 By Nadeen Shalabi

2. What is the Eeconomic Problem ?

3. All societies face the economic problem , which is the problem of how to make the best use of limited, or scarce, resources. The economic problem exists because, although the needs and wants of people are endless, the resources available to satisfy needs and wants are limited.

4. Economic Resources There are four fundamental types of economic resources: Land, Labor, Capital, Entrepreneurship 1-Land : it is an economic resource that includes all natural physical resources like gold, iron, silver, oil etc . 2-Labor : it is the human input in the production or manufacturing process. Workers have different work capacity. The work capacity of each worker is based on his own training, education and work experience .

5. Economic Resources There are four fundamental types of economic resources: Land, Labor, Capital, Entrepreneurship 3-Capital : it is a term that means investment in the capital goods. So, that can be used to manufacture other goods and services in future . - Fixed Capital: It includes new technologies, factories, buildings, machinery and other equipment . - Working Capital : It is the stock of finished goods or components or semi-finished goods or components. - Capital productivity : New features of capital building, machinery or technology are commonly used to improve the productivity of the labor -Infrastructure: It is a stock of capital that is used to maintain the whole economic system. Such as roads, railway tracks, airports etc.

6. Economic Resources There are four fundamental types of economic resources: Land, Labor, Capital, Entrepreneurship 4-Entrepreneurship: The Entrepreneur is person who wants to supply the product to the market, in order to make profit . Entrepreneurs usually invest their own capital in their business. This financial capital is generally based on their savings and they take risks linked to their investments. This risk-taking can be rewarded by the profit of the business. Entrepreneurship is, thus, an important economic resource . Following are the factors of Entrepreneurship: Income Wealth Labor and Wages Capital and Interest Profit and Enterprise

7. HELP CORNY IN HADLING THIS MONTH BUDGET!!

8. Thanks! Do you have any questions?