Types of Economic Resources

Land/Natural Resources Entrepreneurship- Risk taken or idea person Labor/Human Resources- Physical effort of humans Capital physical- anything (tools or items used to make something else. Normally made by humans) Human- Human knowledge and education (You are in training for a new skill)

Land Water Oil Coal Trees Anything that comes or originates from the Earth.

Entrepreneurship The risk taker for creating a business Example- Steve Jobs

Physical Capital Man Made tools

Human Capital The job training and knowledge needed to do a job.

Marginal Analysis

When making a decision on how to use a small amount of resources. Example: Will one more hour help me make a higher grade on a test.

Cost vs. Benefit Analysis

Weighing the good vs the bad A rational person will always pick the positive choice.

Utility

The amount of satisfaction you get from something.

Marginal Utility

How much satisfaction you are getting by repeating your action. When eating a box of Oreos, do you enjoy the first cookie as much as the 60th?

Efficiency

Using your resources wisely Not wasting anything

Underutilization Wasting your resources

Production Possibility Curve A curve showing the rates of two goods or services an economy can produce efficiently in a given period of time.