Production Possibilities and Opportunity Cost
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| 14172905 | Factor of Production | Any resource used in the productive process, which includes land, labor, capital, and entreprenuership. | |
| 14172906 | Land | Natural resources - water, air, minerals, trees, forests, etc. | |
| 14172907 | Labor | Human effort, physical or mental, used in the productive process. | |
| 14172908 | Capital | Man made goods used in the production of other goods or services. | |
| 14172909 | Human Capital | The knowledge and skills of labor, acquired primarly by education and training. | |
| 14172910 | Entreprenuership | A person who assumes the risks and uncertainties of doing business. | |
| 14172911 | Production Possibilities | Various combinations of goods than can be produced in an economy assuming economic efficiency. | |
| 14172912 | Economic Efficiency | Maximum production of goods and services with fullest employment of an economies resources. | |
| 14172913 | Unemployment | At least one factor of production is unused. | |
| 14172914 | Underemployment | Using resources, but not to their greatest potential. | |
| 14172915 | Opportunity Cost | The best or most valued alternative sacrificed in order to have something else. What is given up in order to have something else. | |
| 14172916 | Specialization | The division of work into specialized activities or tasks, allowing people to be more productive. | |
| 14172917 | TANSTAAFL Principle | "There ain't no such thing as a free lunch." - Every choice made involves an opportunity cost. | |
| 14172918 | Absolute Advantage | The ability to produce using the fewest resources. | |
| 14172919 | Comparative Advantage | The ability to product with the lowest opportunity cost. | |
| 14172920 | Innovation | An idea that eventually becomes a new, applied technology. | |
| 14172921 | Law of Increasing Costs | The idea that as we shift factors of production from making one good or service to another, the cost of producing the second item increases |
