tự túc là hạnh phúc

Economics: social ___ analyzing the most efficient way to use ___ resources

• science/scarce

• ideology/limited

• duty/unlimited

Scarcity: ___ wants but limited resources

Opportunity Cost

• most desirable alternative given up when making a choice

• opportunity cost measures only the value of the next-best alternative

• second best option

• first best option

Factors of Production

• Labor

• Land

• Capital

• Entrepreneurship

• Competition

Factors of Production: Labor

• physical + mental input

• workforce

• wages

• machines

Factors of Production: Land

• extracted resources (materials from environment for human use)

• farms, crops, soil, forests for rent

• manmade production

Factors of Production: Capital

• fixed + working capital

• manmade use of productions (machinery, buildings)

• gaining interest

Factors of Production: Entrepreneurship

• workers, employees

• organization of factors

• managers, risk takers, organizers, etc.

Production Possibilities Curve (PPC): inside the curve

Production Possibilities Curve (PPC): along the curve