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.