EconCh 2 - Chapter 2 Capital: things that are themselves...

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Chapter 2 Capital : things that are themselves produced and that are then used in the production of other gods and services ie. Buildings, equipment, software, roads. Factors of Production: the inputs into the process of production. Another word for resources. There Key factors of production are: Production: The process that transforms scarce resources into useful goods and services. Inputs or Resources: Anything provided by nature or precious generations that can be used directly or indirectly to satisfy human wants. OutPuts: Usable products. Opportunity cost: the best alternative that we give up, or forgo, when we make a choice or decision. Theory of comparative advantage: Ricardo’s theory that specialization and free trade will benefit all trading parties, even those that may be absolutely more efficient producers. Absolute Advantage:
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This note was uploaded on 03/03/2008 for the course ECON 1120 taught by Professor Wissink during the Spring '05 term at Cornell University (Engineering School).

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EconCh 2 - Chapter 2 Capital: things that are themselves...

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