Snakes & Donuts: Concepts in Economy, Resources, and Scarcity (Vocabulary)

Vocabulary flashcards covering key terms from the notes on economy, natural resources, scarcity, factors of production, human capital, capital goods, specialization, trade, and entrepreneurship.

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 and is used to produce goods and services; often referred to as land.

Scarcity

The condition that exists when unlimited wants are greater than limited resources.

Factors of Production

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.

Capital Goods

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

Human Capital Investment

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

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.

Entrepreneur

A person who starts and runs a business, taking on financial risk.