[ECON-UA 2] - Midterm Exam Guide - Comprehensive Notes for the exam (54 pages long!)
Document Summary
5/9/2016, 5:27 pm choices under conditions of resource scarcity -> opportunity cost opportunity cost | the value of the next best alternative sacrificed for a choice (what you sacrifice) If time and money resources were not scarce the concept of oc and economics in general would not exist. Capital | produced means of production physical capital (machinery) & human capital (skill and training) Entrepreneurship | person who combines all resources to produce goods innovative and take risks. Land | natural resources timber, minerals, physical space on which structures are built. Labour | time of humans in the production process these resources are scarce in the society production possibility frontier | curve showing all combinations of. 2 goods that can be produced with a given amount of resource and a given technology. *oc is the vertical drop between points moving from left to right on the ppf.