econ

labor

“human effort” applied to resources in order to produce. 

production

 the creation of any kind of good or service.

capital

“tools” used by labor in the production process.

recources

anything that can be used for production.

entrepreneurship

the organization and risk necessary to bring production about (primary/foundational).

factors of production

the four general classifications of things that can be combined in order to produce.

natural recources

things that are in their “natural state”.

These things “of nature” have not been altered or changed by human hands.

model

a theory or an idea of what something is like or how something works.

positive information

information based on fact.  It can be proven.  It is empirical.

normative information

information based on opinion.  Cannot be proven yet.  Could be false.

Rational Choice

taking the things with greater value and giving up those with lesser values.

production possibilities frontier

a graph that shows the different combinations of two products that could be produced from a given quantity of resources.