Snakes & Donuts: Human Capital, Natural Resources & Scarcity (Vocabulary)

Vocabulary flashcards covering core economic concepts from the notes: economy, natural resources, scarcity, factors of production, human capital, human capital investment, capital goods, specialization, and trade.

Economy

The system by which a group of people living in a country decide to produce and distribute goods, services, and resources.

Natural Resources

Something that occurs naturally in or on the earth that is used to produce goods and services; sometimes referred to as land.

Scarcity

When unlimited wants are greater than limited resources.

Factors of Production / Productive Resources

The natural, human, capital, and entrepreneurial resources that are available to make goods and services; also known as factors of production.

Human Capital

The knowledge and skills that people obtain through education, experience, and training.

Human Capital Investment

The efforts people put forth to acquire human capital, including education, experience, and training.

Capital Goods

Man-made goods used to produce other goods and services; examples include buildings, machinery, tools, and equipment.

Specialization

Focusing productive efforts on a specific or small range of goods and services to maximize efficiency.

Trade

The exchange of goods and services for money or other goods and services.