econ ch 1
Land
economics, land refers to the "gifts of nature," or natural resources not created by humans. "Land" includes deserts, fertile fields, forests, mineral deposits, livestock, sunshine, and the climate necessary to grow crops. Because only so many natural resources are available at any given time, economists tend to think of land as being fixed, or in limited supply.
Gross Domestic Product (GDP)
dollar value of all final goods and services, and structures produced within a country's borders in a 12-month period. CDP is the most comprehensive measure of a country's total output and is a key measure of the nation's economic health.
entrepreneur
, a risk-taker in search of profits who does something new with existing resources. Entrepreneurs often are thought of as being the driving force in an economy because they exhibit the ability to start new businesses or bring new products to market.
financial capital,
, the money used to buy the tools and equipment used in production.
economics
Economics is the study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources
Scarcity
Scarcity is the condition that results from society not having enough resources to produce all the things people would like to have.
Capital
capital-the tools, equipment, machinery, and factories used in the production of goods and services. Such items also are called capital goods to disting
need
is a basic requirement for survival and includes food, clothing, and shelter.
Want
is a way of expressing a need.
Labor
labor-people with all their efforts, abilities, and skills. This category includes all people except for a unique group of individuals called entrepreneurs, which we single out because of their special role in the economy
factors of production
or resources required to produce the things we would like to have, are land, capital, labor, and entrepreneurs
Production
production, or the process of creating goods and services, can take place. In fact, everything we produce requires these factors.
