Vocab 1
The action of withdrawing money from an account or borrowing money.
What is dissaving?
Payment for the use of an owner's property.
What is rent?
Factor costs involving all payments for labor used to produce goods or services.
Factor costs involving the rewards entrepreneurs receive for successful risk taking.
What are profits?
A situation in which a government, business firm, or individual receives more income than is paid out in expenses.
What is a budget surplus?
A table or chart explaining the relationships between pairs of variables; also called a tabular model.
What is a schedule?
An additional charge that a creditor demands from a borrower to cover the expense of the loan and to provide a profit; the factor cost involving the payments made on borrowed money.
What is interest?
The tools business firms use to produce goods and services.
What is real capital?
The factor of production denoting all the natural resources that go into the production of goods.
What is land?
A situation in which a government, business firm, or individual receives less income than is paid out in expenses.
What is a budget deficit?
A graph formed by the plotting of data involving two variables and the connecting of the resulting points to form a line of infinite information from the data.
What is a line graph?
The factor of production denoting the activity of creatively combining natural resources, human labor, and financial capital in unique ways to develop new and useful products and services.
A table or chart explaining the relationships between pairs of variables; also called a schedule.
What is a tabular model?
A situation in which governmental borrowing reduces the financial capital available to business firms.
What is crowding out?
Water, lumber, zinc, iron, and oil are all examples of this factor of production.
What is land?
The resources used in producing the nation's GDP; land, labor, financial capital, and entrepreneurship.
What are factors of production?
The factor of production denoting all human effort that goes into the creation of goods and services.
What is labor?
The payments business firms make in exchange for the four factors of production.
What are factor costs?
The vast collection of financial institutions that receive deposits of excess funds from households and that lend to business firms; includes commercial banks, savings and loan associations, credit unions, insurance companies, finance companies, and stockbrokerage firms.
Money, financial investments, and tools and equipment are all examples of which factor of production?
What is capital?
A model depicting the flow of economic goods and services between households, business firms, the government, and financial markets.
What is the circular flow model?
The total expenditures made by all households.
What are consumption expenditures?
Payments of money or goods from the government to individuals for which no specific economic repayment is expected.
What are transfer payments?
A model that enables an economist to see the maximum feasible amounts of two commodities that a business can produce when those items are competing for that business's limited resources.
What is a production possibilities curve?
Elon Musk, Steve Jobs, Bill Gates, and Oprah Winfrey are all examples of this factor of production.
What are entrepreneurs?