econ. first quiz/test

Factors of production

Resources used to make all goods and services.

Land

All natural resources used to produce goods or services.

Labor

Effort a person devotes to a task for which that person is paid.

Capital

Any human-made resource used to create other goods or services.

Human capital

the knowledge and skills a worker gains through education and experience

Physical capital

Human-made objects used to create goods or services.

Need

Something essential for survival.

Want

Something that people desire but is not necessary for survival.

Goods

The physical objects that someone produces.

Services

The actions or activities that one person performs for another.

Scarcity

The principle that limited amounts of goods and services are available to meet unlimited wants.

Economics

The study of how people seek to satisfy their needs and wants by making choices.

Shortage

A situation where consumers want more of a good or service than producers are willing to make available at a particular price.

Entrepreneur

A person who decides how to combine resources to create goods and services.

human

skills and knowledge gained by a worker

physical

human made objects used to create goods or services resources such as machinery, tools, and buildings.