Business Building Blocks
This is using economic resources to manufacture goods or provide services.
What is production?
This term describes when workers focus on specific tasks or skills to increase efficiency.
What is specialization?
The amount of money a business receives or takes in over a time period.
What is revenue?
This factor includes all the natural resources used in production, like water, minerals, and forests.
What is land?
The theories, principles, and models which deal with the production, distribution, and consumption of goods and services.
What is "economics"?
Labor and Entrepreneurship are _______ factors of production.
What is human?
When tasks are broken down so each worker does one part of a job, it's called this.
What is division of labor?
This type of revenue is income from sales or services based on the goal of the business.
What is operating revenue?
This factor represents the human effort and skills involved in creating goods and services.
What is labor?
In this type of economy, individuals may increase spending and see a surplus of job opportunities.
What is a "stable" or "thriving" economy?
Land and Capital are _________ factors of production.
What are non-human?
Performing extremely repetitive tasks, resulting in employee boredom can affect division of labor production in this way.
What is negatively?
Also called net income.
What is profit?
The tools, machines, and buildings used to produce goods are part of this factor.
What is capital?
These are goods and services a person desires, yet are unnecessary for day-to-day life.
What are wants?
The measurement of the effectiveness of a product.
What is productivity?
The United States exporting petroleum products made from oil to other countries in as an example of this.
What is global trading?
This occurs when the total expenses exceed the total revenues.
What is loss?
This factor of production involves risk-taking and innovation to start new businesses.
What is entrepreneurship?
These are goods and services a person requires for survival.
What are needs?
The measurement of an economy’s output.
What is Gross Domestic Product (GDP)?
This law states at some point adding more factors to a production process will not improve returns.
What is the Law of Diminishing Returns?
What is the profit & loss equation?
Total revenues - total expenses = profit or loss
The economic problem of having unlimited human wants and needs in a world of limited resources.
What is scarcity?
In this type of economy, individuals may spend less on wants and experience lower wages.
What is an "unstable" or "low" economy?