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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
Resources
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 Resources
things that are in their “natural state”. These things “of nature” have not been altered or changed by human hands
Normative Information/Statements
information based on opinion. Cannot be proven yet. Could be false
Positive Information/Statements
information based on fact. It can be proven. It is empirical
Rational Choice
taking the things with greater value and giving up those with lesser values
Model
a theory or an idea of what something is like or how something works
Production Possibilities Frontier
a graph that shows the different combinations of two products that could be produced from a given quantity of resources
