Chapter 1 Lesson 3 Econonmics

economic growth

occurs when a nations total output of goods and serviced increases over time.

productivity

a measure of the amount of goods and services produced with a given amount of resources in a specific period of time

human capital

the sum of people’s skills, abilities, health, knowledge, and motivation

division of labor

is a way of organizing work so that each worker or work group completes a separate part of the overall task

specialization

occurs when factors of production perform only tasks they can perform better than others.

economic interdependence

we rely on others, and others rely on us to provide most of the goods and services we consume.

market alllows for…

buyers ands ellers to exchange a product

factor market

where all of the factors of production are bought and sold

product markets

markets were producers sell their goods and services

economic model

a simplified equation, graph, or figure that shows how something works.