Krueger, Explorations in Economics 1e, Module 1
Physical capital
Any long-lasting good that is used to make other goods or services.
Land
Anything drawn from nature for use in the production of goods or services.
Capital
Anything long lasting that is created by humans for use in production.
Inputs
Four types of resources-land, labor, capital, and entrepreneurship-along with anything made with these resources that is then used to make something else, such as cement, steel, lumber, and plastic.
Needs
Minimal requirements of things such as food, water, and shelter that are necessary for survival.
Goods
Physical items produced in an economy, such as jeans, tennis rackets, popcorn, cars, and homes.
Opportunity cost
The value of the next-best alternative given up when that choice is made.
Entrepreneurship
The willingness of people to organize, operate, and assume the risks involved with business ventures.
Wants
Things that are desired but are not essential to life.
Society
A collection of people who share a common bond, such as those living in a city, a country, or even the entire world.
Economy
A system for coordinating the production and distribution of goods and services.
Services
Activities produced in an economy, such as education, entertainment, and health care.
Resources
The basic elements from which all goods and services are produced.
Scarcity
The lack of a sufficient supply to meet all desires.
Human capital
The skills and knowledge of workers.
Economics
The study of choice under conditions of scarcity.
Labor
The time and effort people contribute to the production process.
Tradeoff
When you give up one thing to get something else.