ECON 103 Study Guide - Chlordiazepoxide, Opportunity Cost, Money Supply
4 Jun 2014
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Document Summary
Scarcity: the perpetual state of insu ciency of resources to satisfy people"s unlimited wants. Economics: the study of how people work together to transform resources into goods and services to satisfy their most pressing wants, and how they distribute those goods and services among themselves. Factors of production: resources used in a production process, i. e. land, capital, human capital. labor, Labor: physical and intellectual e ort of people engaged in producing goods and services. Includes manufactured goods used to make and market other goods and services. Human capital: knowledge and skills acquired by labor, principally through education and learning. Production possibilities: possible combinations of inputs to produce out- puts. Is determined by technical conditions and resource constraints. Production possibility frontier (pff): in the production of two goods, for instance capital and consumption goods, the pff represents the trade-o facing an economy when is producing two goods e ciently.
