Economics - Chapter 1 - Vocab

factors of production

• The land, labor and capital resources used to produce goods and services

• The financial resources required for marketing

• The technology used to enhance production efficiency

• The management strategies employed in a business

consumption

• The process of using a product or service

• The act of producing goods

• The study of economic systems

• The analysis of market trends

entrepreneurship

• The process of managing a large corporation

• The imagination, innovative thinking, and management skills needed to start and operate a business

• A method of investing in stocks and bonds

• The study of economic theories and principles

economics

• A social science that studies how people, acting individually and in groups, decide to use scarce resources to satisfy their wants

• The study of how to maximize profits in a business

• A branch of mathematics that deals with financial calculations

• The analysis of historical events and their impact on society

capital

• The financial assets used to fund a business

• The buildings, tools, and machines people create and use to produce final goods and services

• The total value of all goods and services produced in a country

• The amount of money a company has in its bank account

benefits

• The losses incurred from a decision

• The gains that result when a choice is made

• The risks associated with a choice

• The alternatives available when making a decision

microeconomics

• The study of individual consumers and businesses.

• The analysis of large-scale economic factors.

• The examination of government policies on the economy.

• The exploration of global trade and finance.

marginal

• The total cost of a decision

• The extra or additional costs or benefits of a decision

• The average cost of a decision

• The fixed costs associated with a decision

incentives

• A positive reward that results from making a choice or behaving in a certain way

• A negative consequence of a decision

• A random chance event that affects outcomes

• A fixed cost associated with a choice

labor

• The physical and mental efforts people use to create goods and services

• A type of currency used in trade

• A legal document for employment

• A method of transportation