Text Design

This document discusses production, economic growth, and trade. It defines production as the process of converting resources like land, labor, capital, and entrepreneurial ability into goods and services. It explains that every economy must answer three basic economic questions: what to produce, how to produce it, and how to distribute what is produced. It then discusses the factors of production in more detail and introduces the concept of opportunity cost when allocating resources between producing different goods. It provides an example using a production possibilities frontier to illustrate opportunity cost and discusses how opportunity costs can increase as an economy specializes more in certain goods.