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14 Cards in this Set
- Front
- Back
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Factors of production |
Land, labor, and capitol |
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Land |
Natural resources |
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Capitol |
Resources and the skills to make it |
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Physical capitol |
Human made resources |
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Human capitol |
Skills and knowledge gained by a worker through education |
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Entrepreneur |
Combines land labor and capitol to make stuff |
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What is a trade off |
Any decision |
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What is an opportunity cost |
Desirable alternative given up as the result of a decision |
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Think at the margin |
Deciding how much more or less to do |
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Law of increasing costs |
Shift factors of production from making one good or service to another, the cost of producing the second item increases |
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Marginal vs total opportunity cost |
Raising from one compared to the bottom to here |
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Laissez-faire |
Let it be |
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Absolute advantage |
Ability to produce more of a given product using a given amount of resources |
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Comparative advantage |
Ability to produce more efficiently given all the other products they could be produced |
