Economic Terms
This is an action or activity performed for someone else.
What is a service?
These are the components of land.
What are natural resources?
These two groups interact in the basic circular flow model.
Who are households and firms?
This economic problem exists because resources are limited but wants are unlimited.
What is Scarcity
This factor of production includes human effort, both physical and mental.
What is labor?
This is where households sell their labor and firms hire workers.
What is the factor market?
This is the next best alternative you give up when making a decision.
What is opportunity cost?
When a business owner risks their own money to start a company, they are acting as this factor.
What is entrepreneurship?
This is where goods and services are exchanged for money.
What is the product market?
This term describes the satisfaction or usefulness gained from a product.
What is Utility
Rent is the payment earned by this factor of production.
What is land?
This flows from firms to households in exchange for labor.
What are wages? (Income)
This explains why the same product can be worth more to one person than another.
What is value?
A delivery truck used by Amazon would be classified as this factor.
What is capital?
This flows from firms to households in the product market.
What are goods and services?