Econ Lesson 2 Vocab Journal

What is the definition of capital in economics?

• The money used for investment or production

• The tools, machines, and buildings used to produce goods and services

• The knowledge and skills people gain from education

• The natural resources used in production

What is correlation in the context of economics?

• The tools and machinery used in production

• A relationship between two factors, pieces of data, or other variables

• The willingness to take risks in business

• The resources used to produce goods and services

Who is an entrepreneur?

• A person who consumes goods and services

• A person who assembles and organizes resources to produce goods and services

• A person who provides labor in exchange for wages

• A person who invests money in businesses

What are the factors of production?

• Land, labor, and capital

• Tools, machinery, and buildings

• Money, goods, and services

• Education, training, and experience

What is financial capital?

• The tools and machinery used in production

• Money used for investment or production

• The natural resources used in production

• The knowledge and skills gained from education

Which of the following is an example of a good?

• Education

• Food

• Labor

• Investment

What is human capital?

• The natural resources used in production

• The tools and machinery used in production

• The knowledge and skills people gain from education and experience

• The money used for investment

What is an input in the production process?

• The goods or services generated by production

• A resource used in the production process

• The extra satisfaction from consuming an additional unit of a good

• The value of the next best alternative given up

What is the law of diminishing marginal utility?

• The observation that as consumption increases, the benefits of each additional unit decrease

• The tools and machinery used in production

• The willingness to take risks in business

• The resources used to produce goods and services

What is a nonrenewable resource?

• A natural resource that can be replaced once used

• A natural resource that cannot be replaced once used

• A human-made object used in production

• Money used for investment