production
is the act of combining productive resources with entrepreneurship to make goods and services.
consumption
is the use of goods and services.
natural resources
are productive resources supplied by nature.
capital goods
are the human-made materials needed to produce goods and services. e.g. buildings, equipment, and tools.
human resources
are the talents and skills of people that contribute to the production of goods and services. .
specialization
The availability of productive resources-human resources, capital goods, and natural resources- promotes this:
productive capacity
is the maximum output of an economy, or the total amount of goods and services that can be produced.
present consequences
are the immediate results of the choices you make.
future consequences
are the delayed results of the choices you make.
cost
is what you give up as the result of a decision you make.
benefit
is what you gain as the result of a decision you make.