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Inputs
Factors of production
Outputs
Goods/services
Resources
The inputs required to produce goods and services
Production
The process of production goods or services
Producer
The people who produce goods or services
Consumption
Using goods or services
Consumer
The person who uses the good or service
Consumption expenditure
The amount you spend on something to consume
Free goods
Items we may need or want that are without limit
Economic goods
Items that we may need or want which are limited in supply
Factors of production
Land, labor, capitar, enterprise
Land
Anything to do with the earth
Labor
The physical or mental effort used to produce goods or services
Capital
Machines used to produce goods or services
Enterprise
A firm
Entrepreneur
Has the risk taking ability to bring all the other factors of production together to run a firm efficiently
Factor rewards
The payments of different factors of production require and receive in order to participate in productive activity
Land factor reward
Rent
Labor factor reward
Wages/salary
Capital factor reward
Interest
Enterprise factor reward
Profit
Factor mobility
The ease with which factors of production move from one productive activity to another
Occupational mobility
The ability of the factors of production to move from one productive task to another
Geographical mobility
The ability of the factors of production to move from one location to another
Consumer non-durables
Economic goods that are consumed quickly by all of us and satisfy immediate consumer needs or wants
Consumer durables
Economic goods that are consumed slowly by all of us and satisfy immediate consumer needs or wants
Opportunity cost
The next best alternative that is foregone in order to satisfy the other
PPC
The graphical representation of different combinations of two goods that can be produced using all given resources to the max
Negative economic growth
When the economy shrinks
Note
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