Lesson 2 Vocab

Question 1

Goods

Answer 1

Physical articles that have been produced for sale or use.

Question 2

Services

Answer 2

Work done by someone else for which a consumer, business, or government is willing to pay.

Question 3

Factors of Production

Answer 3

The resources used to produce goods and services.

Question 4

Entrepreneurship

Answer 4

The willingness and ability to take the risks involved in starting and managing a business.

Question 5

Capital

Answer 5

The tools, machines, and buildings used to produce goods and services.

Question 6

Productivity

Answer 6

A measure of the efficiency with which goods and services are produced. (Often shown as quantity produced per person per hour.)

Question 7

Opportunity Cost

Answer 7

The value of the next best alternative that is given up when making a choice. The measure of what you must give up when you make a decision.

Question 8

Production Possibilities Frontier (PPF)

Answer 8

A simple model of an economy that shows all the combinations of two goods that can be produced with the resources and technology available.