BM: PART 2

The need to make choices because economic wants are unlimited but means (income, time, resources) for satisfying wants are limited.

The land, labor, capital and entrepreneurial

ability that used in the production of goods and

services.

It includes all-natural resources (“gift of

nature”) used in the production processes, such as

arable land, forests, minerals and oil deposits, and

water resources.

It consists of physical and mental talents of

individuals used in producing goods and services. The

services of a logger, retail clerk, beautician, teacher,

professional hockey player, basketball player, and

physicist all fall under the “labor”.

Human-made resources (buildings,

machinery and equipment, storage facility, and

others) used to produce goods and services.

The human talents that

combined the other resources to produce a product,

make decisions, innovate and bear risks.

A schedule or curve that allows various

combinations of two products a consumer can

purchase with a specific money income.

A graph showing the different combinations of

goods or services that can be produced in a full

employment, full production economy where

available supplies of resources and technology

are fixed.

As the production of goods increases, the opportunity of increasing an additional unit rises.

A schedule or a curve that shows the various

amounts of a product that consumers are willing

and able to purchase at each of a series of possible

prices during a specified period of time.