Basics
Something Essential for survival, such as food or medical care
Need
The fact that we have limited goods and services available to meet unlimited wants
Scarcity
Giving up one option in favor of another, possibly more favorable option
Trade-Off
Something that we desire but that is not necessary for survival
Want
Oil, Fertile land, iron and coal are examples of this type of factor of production
Land
The extra cost of adding one unit
Marginal Cost
Physical objects that someone produces
Good
The effort people devote to tasks for which they are paid
Labor
The extra benefit of adding one unit
Marginal Benefit
Actions or activities that one person performs for another
Services
The knowledge and experience a worker gains through education
States that as production shifts from making one item to another, more and more resources are necessary to increase production of the second item
Law of Increasing costs
Human-made objects used to create other goods and services
Physical capital