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goods
___________ or physical objects produced for sale.
Physical articles that have been produced for sale or use. EX: food, clothing, and cars.
services
___________ or activities done for us by others.
Work done by someone else for which a consumer, business, or government is willing to pay.
shortage
A ___________ is a lack of something that is desired, a condition that occurs when there is less of a good or service available than people want at the current price.
Inputs
___________ are the scarce resources that go into the process.
Factors of production
___________ are divided into three basic categories: land, labor, and capital (aka productive resources).
The resources used to produce goods and services. Economists define these resources as land, labor, and capital.
Outputs
___________ are the goods and services produced using these resources.
Production equation
___________ = land + labor + capital = good and services
Entrepreneurship
___________ is the willingness to take the risks involved in starting a business.
Entrepreneurs
___________ assemble the other inputs to create new goods and services.
Land
___________ is the "gifts of nature" that are used to produced to produce goods and services.
Perpetual Resources
___________ are natural resources that are both widely available and in no danger of being used up.
Renewable resources
___________ can be replaced as they are used. EX: Forests, fresh water, and fish.
Nonrenewable resources
___________ are resources that are used are gone forever. Fossil fuels like oil, coal, and natural gas.
Labor
___________ is time and effort people devote to producing goods and services in exchanging for wages.
Human capital
___________ is the knowledge and skill people gain from education, job training, etc.
Correlation
___________ is a relationship between country's human capital and living standard.
Financial capital
___________ is what economists refer to money used.
Physical capital or capital goods
___________ are concrete productive resources.
Capital
___________ consists of the tools, machines, and buildings used in the production of other services and goods.
Productivity
___________ is a measure of the output of an economy per unit of input.
A measure of the efficiency with which goods and services are produced. The quantity produced per person per hour.
Utility
___________ is the satisfaction or pleasure one gains from consuming a product or service or from taking an action.
Opportunity cost
___________ of any action is the value of the next best alternative you could have chosen.
The value of the next best alternative that is given up when making a choice. This is the measure of what you must give up to get what you most want.
Marginal utility
___________ is the extra satisfaction or pleasure you will get from an increase of one additional unit of a good service.
Negative utility
___________ by making you feel sick.
Going on drinking and getting sick.
Law of Diminishing Marginal Utility
___________ ......
As the quantity of a good consumed increases, the marginal utility of each additional unit decreases.
Production possibilities frontier (PPF)
___________ is an economic model, in the form of a line graph.
A simple model of an economy that shows all the combinations of two goods that can be produced with the resources and technology currently available.
Production possibilities curve
___________ sloping line.
Economic efficiency
___________ is the result of using resources in a way that produces the max amount of goods and services
