Chapter 19-The American Economy: Section 1

factors of production

(natural resources) Land, Labor, Entrepreneurship, Capital

labor

Human effort directed toward producing goods and services

goods

Physical objects such as clothes or shoes

natural resources

Raw materials supplied by nature that come from the earth, the water, or the air and are used to produce goods.

Gross Domestic Product (GDP)

The sum total of the value of all the goods and services produced in a nation

capital

previously manufactured goods used to produce other goods and services

standard of living

quantity and quality of goods and services available to an individual or society

entrepreneur

A person who starts up and takes on the risk of a business

services

Actions or activities that one person performs for another.