Good Times
_________ are items or acts of assistance that individuals and governments buy and use up in the current period. ______ bought by households include items such as housing, automobiles, bottled water, ramen noodles, chocolate bars, Po’ boy sandwiches, movies, downhill skiing lessons, and doctor and dental services. _______ bought by governments include items such as police and fire services, garbage collection, and education.
Consumption good and services
Goods and services are produced by using productive resources. Economists call the productive resources ___. These ____ are grouped into four categories.
Factors of production
____ are paid for the services of labor.
Wages
We can organize the data you’ve just studied using the _____ — a ___ of the economy that shows the movement of expenditures and incomes that result from decision makers’ choices and the way those choices interact to determine what, how, and for whom goods and services are produced.
Circular Flow Model
These four to seven countries (depending on your metric) make up the emerging and growing block of countries in the world that may challenge US economic hegemony.
Brazil, Russia, India, Nigeria, China, South Africa, and South Korea
______ is the knowledge and skill that people obtain from education, onthe- job training, and work experience. You are building your own ___ right now as you work on your economics course and other subjects.
Human Capital
In economics, ______ includes all the “gifts of nature” that we use to produce goods and services. ____ is what, in everyday language, we call natural resources. It includes land in the everyday sense, minerals, energy, water, air, and wild plants, animals, birds, and fish. Some of these resources are renewable, and some are nonrenewable. The U.S. Geological Survey maintains a national inventory of the quantity and quality of natural resources and monitors changes to that inventory.
Land
___ is paid for the use of land or to lease items.
Rent
___ are individuals or groups of people living together. The 124 million ___ in the United States own the factors of production—land, labor, capital, and entrepreneurship—and choose the quantities of these resources to provide to firms. Households also choose the quantities of goods and services to buy.
Households
This is the process of human capital or high skilled labor increasing or returning to a country.
Brain Gain
_____ are goods that businesses and governments buy to increase productive resources to use during future periods to produce other goods and services. _____ bought by businesses include items such as auto assembly lines, shopping malls, airplanes, and oil tankers. _____ bought by governments include missiles and weapons systems for national security, public schools and universities, and interstate highways.
Capital Goods
____ is the work time and work effort that people devote to producing goods and services. ___ includes the physical and mental efforts of all the people who work on farms and construction sites and in factories, shops, and offices. The Census Bureau and Bureau of Labor Statistics measure the quantity of ____ at work every month.
Labor
___ entrepreneurs or a business receive a ___ or ___ for running their businesses. This is found by getting the net sum when you subtract cost from revenues.
Profit or Loss
___ are the institutions that organize the production of goods and services. The 28 million ____ in the United States choose the quantities of the factors of production to hire and the quantities of goods and services to produce.
Firms
This is the process of human capital or high skilled labor decreasing or leaving a country or region.
Brain Drain
___ is the moment at which extraction of petroleum reaches a rate greater than that at any time in the past and starts to permanently decrease. (Not in the textbook).
Peak Oil
_____ consists of the tools, instruments, machines, buildings, and other items that have been produced in the past and that businesses now use to produce goods and services. ___ includes hammers and screwdrivers, computers, auto assembly lines, office towers and warehouses, dams and power plants, airplanes, cookie factories, and shopping malls.
Capital
_____ is paid for the use of capital or financial capital.
Interest
Goods and services are bought and sold in _____
Goods Markets
Extra Credit: When trade imports exceed exports a country has what's called a ___ ____. Much like when a government budget spends more than they take in.
Trade Deficit
Extra Credit: The term ___ refers to business processes or industries that require large amounts of investment to produce a good or service and thus have a high percentage of fixed assets, such as property, plant, and equipment (PP&E). Companies in capital-intensive industries are often marked by high levels of depreciation. Advanced and Developed Economies are known to possess much of this. (Not in the text book)
Capital Intensive Technologies
_____ is the human resource that organizes land, labor, and capital to produce goods and services. ____ are creative and imaginative. They come up with new ideas about what and how to produce, make business decisions, and bear the risks that arise from these decisions. If their ideas work out, they earn a profit. If their ideas turn out to be wrong, they bear the loss.
Entrepreneurship
______ is any arrangement that brings buyers and sellers together and enables them to get information and do business with each other. An example is the ____ in which oil is bought and sold.
Market
The services of factors of production are bought and sold in _____
Factor Markets
Extra Credit: This is the phenomena where more powerful countries, institutions, or colonizers extract and use a vast amount of natural resources, land, or capital in another country or region. As result the country or region are left without sustainable capital, land, or resources in the future thus stagnating or harming their productivity.
Dutch Disease