Factors or production
land, labor, capital, entrepreneurship
Scarcity
Limited quantities of resources to meet unlimited wants
Choices
decisions
opportunity cost
the most desirable alternative given up as the result of a decision
Trade-off
alternatives that we sacrifice when we make a decision
positive statement
a factual claim about how the world actually works
normative statement
claims that attempt to prescribe how the world should be
human capital
the knowledge and skills a worker gains through education and experience
physical capital
all human-made goods that are used to produce other goods and services; tools and buildings
land
all natural resources used to produce goods and services
labor
Human effort directed toward producing goods and services
Entrepreneurship
the process of bringing together the three factors of production - natural resources, labor and capital - the person who does this is an entrepreneur.
Economics
The study of how people seek to satisfy their needs and wants by making choices