C02 - PPC & Opportunity Cost

Production Possibilities and Opportunity Cost

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