Unit 1 Review

econ econ econ

What are the Factors of Production?

Land, Labor, Capital, Entrepreneurship

What are the three types of capital in the factors of production?

human capital, physical capital, financial capital

What is a tradeoff?

The alternative decision (or decisions) to what you chose

What is opportunity cost?

The value of the alternative of a choice

What is the Production Possibilities Curve

A graph of an economy producing two goods, represents the use of available resources

C.E.L.L (The Factors of Production)

* Capital
* Entrepreneurship
* Land
* Labor

The Invisible Hand

Competition and self interest regulate the free market on their own

Law of Increasing Opportunity Cost

As you product more of a good, the opportunity cost will increase