economics
social science dealing with how people satisfy unlimited wants with the careful use of scarce
resources
factors of production productive resources
capital(capital goods)
Man made resources which including tools, equipment, and factories used in the production of
goods and services
labor
people with all their efforts, abilities and skills
entrepreneurship organizes the other three factors of production and takes on the risks of success
or failure of a business.
good
tangible economic product that is useful, relatively scarce, and transferable to others
service
Services are non-physical(intangible) items, e.g.
trade-off alternative that is available whenever a choice is to be made
opportunity cost
the cost measured in terms of the next best choice given up when making
a decision
Economic sectors
Primary sector of the economy includes any industry involved in the extraction and collection of
natural resources.
Secondary sector contains industries that:
1 manufacture or process goods, change raw materials into finished products
2 construct buildings, roads and bridges
Tertiary sector provides services for consumers or businesses.
Quaternary sector includes technology development, scientific research and
research & development industries.