Vocab Factors of Production

Economic interdependence

is a consequence of specialization or the division of labour. The participants in any economic system must be part of a trading network to obtain the products they cannot produce efficiently for themselves.

Factors of Production

is an economic term that describes the inputs that are used in the production of goods or services in order to make an economic profit. The factors of production include land, labor, capital and entrepreneurship

Gross Domestic Product (GDP)

is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time.

Division of Labor

the assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

Opportunity cost

the loss of potential gain from other alternatives when one alternative is chosen.

Land

the part of the earth's surface that is not covered by water, as opposed to the sea or the air.

Productivity

the state or quality of producing something, especially crops.

Labor

work, especially hard physical work.

Economics Productivity

Productivity is an economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in revenues and other gross domestic product (GDP) components such as business inventories.

Entrepreneurs

a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.