consumable outputs
goods & services
production process
how the inputs of resources are made into consumable outputs
What are the resources/inputs?
- Natural Resources/land
- Labor
- Capital
- Entrepreneurship
What is the cost for natural resources/land?
Rent - can’t really claim anything
Cost of labor?
Wage - Must pay workers
Cost of “real” capital?
Interest - paying for parts
Cost of entrepreneurship?
Profit - must be made to be successful
Technology
WAY inputs are combined to produce output
Make work fallacy
idea that ALL jobs are valuable - American jobs are the most valuable is also a part of this
Law of increasing opportunity cost (LIOC)
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
Economic Growth
expansion of economy’s productive capabilities
Human Capital
upgrade labor by education & training & hiring
Invisible Hand
everything the markets are pointing too led by entrepreneurship