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Flashcards in Ch 3 Deck (13)
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1
Q

consumable outputs

A

goods & services

2
Q

production process

A

how the inputs of resources are made into consumable outputs

3
Q

What are the resources/inputs?

A
  1. Natural Resources/land
  2. Labor
  3. Capital
  4. Entrepreneurship
4
Q

What is the cost for natural resources/land?

A

Rent - can’t really claim anything

5
Q

Cost of labor?

A

Wage - Must pay workers

6
Q

Cost of “real” capital?

A

Interest - paying for parts

7
Q

Cost of entrepreneurship?

A

Profit - must be made to be successful

8
Q

Technology

A

WAY inputs are combined to produce output

9
Q

Make work fallacy

A

idea that ALL jobs are valuable - American jobs are the most valuable is also a part of this

10
Q

Law of increasing opportunity cost (LIOC)

A

applying the POA & the production of 2 goods where resources are not all the same
- want more of 1 good> must give up some of another

11
Q

Economic Growth

A

expansion of economy’s productive capabilities

12
Q

Human Capital

A

upgrade labor by education & training & hiring

13
Q

Invisible Hand

A

everything the markets are pointing too led by entrepreneurship