Whenever a choice is made, something is given up. The opportunity cost of a choice is the value of the best alternative given up. People whose wants are satisfied by using goods and services are called consumers. Productive resources are the natural resources, human resources, and capital goods available to make goods and services. Human resources are the quantity and quality of human effort directed toward producing goods and services.
Capital goods are good that are produced and used to make other goods and services.
Human capital refers to the quality of labor resources, which can be improved through investments in education, training, and health. Entrepreneurs are people who organize other productive resources to make goods and services. People who make goods and provide services are called producers. Productive resources are limited. Students will be able to use this knowledge to identify what they gain and what they give up when they make choices.