Econ Alive! Chapter 2 Vocabulary

the tools, equipment, machinery, and factories used in the production of goods and services

• utility

• production equation

• economic efficiency

• Capital

the manmade objects—tools, machinery, buildings, or other fabricated goods—used in production; also called physical capital

• capital goods

• human capital

• production equation

• input

a relationship between two factors, pieces of data, or other variables

• Correlation

• financial capital

• negative utility

• shortage

the result of using resources in a way that produces the maximum amount of goods and services

• economic efficiency

• financial capital

• negative utility

• Capital

a person who assembles and organizes the resources necessary to produce goods and services

• production possibilities curve/frontier

• entrepreneur

• law of diminishing marginal utility

• entrepreneurship

the resources used to produce goods and services. Economists define these resources as land, labor, and capital

• factors of production

• land

• renewable resource

• production possibilities curve/frontier

the willingness and ability to take the risks involved in starting and managing a business

• shortage

• entrepreneurship

• financial capital

• land

money used for investment or production

• shortage

• negative utility

• renewable resource

• financial capital

a physical article that has been produced for sale or use

• Correlation

• good

• service

• input

the knowledge and skills people gain from education, on-the-job training, and other experiences

• human capital

• production possibilities curve/frontier

• Correlation

• productivity