Sept 28 Econ 20A Lecture
Principles 4-5 + Opportunity Cost
- Factors of Production
- Human Capital: Labor, skills, experience, number of workers
- Physical Capital: Machines, factories, equipment that are used to produce goods
- Natural Resources: Land, materials, etc.
- Some consider entrepreneurship as a resource; the willingness to innovate and take risk
- Affects Production Possibilities Frontier