Summary:
1.
Production is the process of using the services of labor and other
resources to make goods and services available. These goods and
services are called outputs.
Economic resources are the inputs
used in the process of production.
2.
Economic resources: labor, capital, natural
resources, entrepreneurship.
3.
A production possibilities table and curve
shows the maximum possible output for one good that can be produced
with available resources, given the output of the alternative good
over a period.
4.
The law of increasing opportunity cost
states that the opportunity cost of each additional unit output of a
good over a period increases as more of that good is produced.
5.
Productive efficiency is attained when the
maximum possible output of any one good is produced given the output
of other goods.
6. Three main sources of
economic growth: increased quantities of economic resources; improved
quality of economic resources;
advances in technology.
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