Chapter 19 Vocab Flashcards
goods
tangible products like books and automobiles that we use to satisfy our wants and needs
tangible products like books and automobiles that we use to satisfy our wants and needs
goods
services
work that is performed for someone else (services include haircuts, home repairs, and forms of entertainment such as concerts)
work that is performed for someone else (services include haircuts, home repairs, and forms of entertainment such as concerts)
services
factors of production
resources necessary to produce goods and services - natural resources, labor, capital, and entrepreneurs
resources necessary to produce goods and services - natural resources, labor, capital, and entrepreneurs
factors of production
natural resources
all the “gifts of nature” that make production possible (include fertile fields, abundant rainfall, forests, mineral deposits, and other resources that we use to make products)
all the “gifts of nature” that make production possible (include fertile fields, abundant rainfall, forests, mineral deposits, and other resources that we use to make products)
natural resources
labor
-nation’s labor force or human resources
-refers to both physical an mental efforts that people contribute to the production of goods and services
-nation’s labor force or human resources
-refers to both physical an mental efforts that people contribute to the production of goods and services
labor
capital (aka capital goods)
tools, machinery, and buildings used to make other products
tools, machinery, and buildings used to make other products
capital (capital goods)
entrepreneur
refers to the individuals who start new businesses, introduce new products, and improve management techniques
refers to the individuals who start new businesses, introduce new products, and improve management techniques
entrepreneur
gross domestic product (GDP)
total value, in dollars, of all the final goods and services produced in a country during a single year
*final good: a good, such as a loaf of bread, sold to its user (intermediate good: goods that go into making a loaf of bread (flour, sugar, etc.)
total value, in dollars, of all the final goods and services produced in a country during a single year
*final good: a good, such as a loaf of bread, sold to its user (intermediate good: goods that go into making a loaf of bread (flour, sugar, etc.)
Gross Domestic Product (GDP)
standard of living
the quality of life based on the possession of necessities and luxuries that make life easier
the quality of life based on the possession of necessities and luxuries that make life easier
standard of living
factor markets
the markets where productive resources are bought and sold
the markets where productive resources are bought and sold
factor markets
product markets
markets where producers offer goods and services for sale
markets where producers offer goods and services for sale
product markets
productivity
a measure of the amount of output produced by a given amount of inputs in a specific period of time
a measure of the amount of output produced by a given amount of inputs in a specific period of time
productivity
specialization
takes place when people, businesses, regions, and even countries concentrate on goods or services that they can produce better than anyone else
takes place when people, businesses, regions, and even countries concentrate on goods or services that they can produce better than anyone else
specialization
division of labor
the breaking down of a job into separate, smaller tasks, which are performed by different workers
the breaking down of a job into separate, smaller tasks, which are performed by different workers
division of labor
economic interdependence
the fact that we rely on others, and others rely on us, to provide the goods and services that we consume
the fact that we rely on others, and others rely on us, to provide the goods and services that we consume
economic interdependence
