C-2 Flashcards
goods
physical objects produced for sale
services
work done by someone else for which a consumer, business, or government is willing to pay.
shortage
lack of something desired, a condition that occur when there is little less of goods and services available than people want at the current price
factors of production
the resources used to produce goods and services
capital
the tools, machines, and buildings used in the production of other goods and services
productivity
the measure of efficiency of with which goods and services are produced
opportunity cost
the value of the next best alternative that is given up a choice
production possibilities frontier (PPF)
a simple economic model that shows how an economy might use its resources to produce two goods
production possibilities curve
a sloping line on the graph measuring data
inputs
the scarce resources that go into the production process
outputs
the goods and services produced from the resources
production equation
combining resources to produce goods and services
entrepreneurship
the willingness to take a risk involved in starting and managing a business
entrepreneurs
assemble the other inputs to create new goods and services
perpetual resources
natural resources that can be used without any danger of running out; sunlight, air
land
a part of earth’s surface that is able to produce natural resources
renewable resources
limited resources
non-renewable resources
resources that can be recycled for repeated uses
human capital
the knowledge and skill that people gain from education, on-the-job training, and other experiences
labor
the time and effort people put devote to producing goods and services in exchange for wages
correlation
the relationship between a country’s level of human capital and its standard of living
financial capital
money that can be invested in stocks, bonds, real estate, or businesses to produce future wealth
utility
satisfaction or pleasure one gain from consuming a product or from taking an action
marginal utility
extra satisfaction or pleasure one gain from consuming a product or from taking an action
