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| Any resource used in a production process. Resources are grouped into labor, land, capital, and entrepreneurship. |
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| A person who alone assumes the risks and uncertainties of a business. |
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| The less than full utilization of a resource's productive capabilities. |
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| The physical and intellectual effort of people engaged in producing goods and services. |
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| The various combinations of goods that can be produced in an economy when it uses its available resources and technology efficiently. |
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| The maximum possible production of goods and services generated by the fullest employment of the economy's resources. |
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| Manufactured goods used to make and market other goods and services. |
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| The quantity of other goods that must be given up to obtain a good. |
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| The division of labor into specialized activities that allow individuals to be more productive. |
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| The investment in workers' health and knowledge, acquired through education, training, and/or experience that enhances their productivity. |
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Definition
| The opportunity cost of producing a good increases as more of the good is produced. The law is based on the fact that not all resources are suited to the production of all goods and that the order of use of a resource in producing a good goes from the most productive resource unit to the least. |
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Definition
| A country's ability to produce a good using fewer resources than the country it trades with. |
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| The knowledge and skills acquired by labor, principally through education and training. |
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| An idea that eventually takes the form of new, applied technology. |
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Term
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Definition
| A country's ability to produce a good at a lower opportunity cost than the country with which it trades. |
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