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. Effective decision making requires comparing the additional costs of alternatives with the additional benefits. Students will be able to use this knowledge to make effective decisions as consumers, producers, savers, investors, and citizens. Different methods can be used to allocate goods and services. People acting individually or collectively through government must choose which methods to use to allocate different kinds of goods and services.