Chapter 7 Flashcards
referring to a high output of goods from a given input of the factors of production
Efficient production
the total amount invested in the production of a good
input
the total amount of a good that is produced
output
the sum cost of all the factors of production used in making goods
total cost
the sum cost of all the factors of production used in producing one unit of a good
average cost
Division of labor advantages
- more goods produced per person
- more inventions encouraged
- fewer tools needed per worker
- better use of resources
- more leisure for workers
- greater variety of goods, including services
- development of specialists
Division of labor disadvantages
- boredom of workers
- standardization of goods
- technological unemployment
- decline of small scale industry
- decline of skilled craftsmen
- possible hostility between labor and management in large industries
- possible dislocations of a delicately interdependent economy
Ford Motor company was originally called what?
Detroit automobile company
the ability of one entity to produce goods or provide services more efficiently than his competitors when given the same resources.
absolute advantage
the ability of an entity to produce a good or provide a service at an opportunity cost that is lower than that of another producer
comparative advantage
is the production of goods in which a country or region has absolute or comparative advantage
geographic specialization
What are the fundamental components of entrepreneurs?
- initiative
- Intelligence
- Imagination
What are the four factors of production?
- Natural resources
- Labor
- Capital
- Entrepreneurship
How did Ford reduce his cost of production?
- Division of labor
- Standardized parts
- Automatic conveyance
(assembly line)
Why does the US not trade with certain nations?
- genocide
- persecution of Christians
- slave labor-human trafficking
