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the value of the best alternative sacrificed when a choice is made
Opportunity cost
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all physical and mental abilities used by ppl in production
Labor
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resources found in nature, such as land, water, forests, mineral deposits, and air
Land
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man-made, durable items used in the production process, such as factories, equipment, dams, and transportation systems
Physical capital
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the knowledge and skills embodied in ppl, as used in the production process
Human Capital
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the ability to see how other resources might be combined in producing a profitable good or service and the willingness to risk organizing a business to do so
Entrepreneurship
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a curve showing the maximum combinations of two goods or services that can be produced by an economy when resources are fully used and the best technology is applied
Production possibilities curve
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the technology that requires the fewest resources to produce a given combination of goods and services
Best technology
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the opportunity cost of producing an additional unit of a good
Marginal cost
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