1Positive Economics
Concerned with what is
2Normative Economics
Concered with what should be
3Land
Includes space, natural resources, and what is commonly thought of as land
4Capital
The physical assets used in production
5Labor
the skills, abilities, knowledge, and effort exerted by people in production
6Entreprenurial Talent
The economic agent who creates the enterprise
7Technology
a manner in which resources are combined to produce commodities
8Cost benefit principle
costs and benefits are the incentives that shape decisions
9Economic Surplus
Total benefit - total cost
10Opportunity cost
The most valuable alternative you had to give up to pursue your choice
11Marginal Principle
decisions about quantities are best made incrementally
12Marginal benefit
the extra benefit from one extra unit
13marginal cost
The extra cost from one extra unit