Factors of Production

What factor of production is a tractor?

Capital

Sectors

Consumer Business Foreign Government

What if the term for the individual that brings together the other economic resources necessary for production?

Entrepreneurs

What is the alternative you face if you decide to do one thing rather than another called?

Tradeoff

Land

any natural resource

Macreconomics

government deisions

GDP (gross domestic product)

gross domestic product total value of all goods and served produced by a country

Microeconimics

individual decisision

Scarcity

occurs whenever we don't have enough resources to produce all the things we need

Factors of productions are necessary to

produce goods and services

Economics

study of how we make our decisions in a world in which resources are limited (everything is scarce)

NDP

the GDP minus the cost of fixing worn out capital goods

Capital

used to make product

Labor

work, manufacturing

What are the gifts of nature that make production possible?

Natural resources

Which factor of production include any form of human effort exerted in production?

Labor

What is the degree to which resources are being used efficiently to produce goods and services called?

Productivity

Entrepreneurship

Risk

The fundamental economic problem is that resources are finite, but the economic wants are insatiable. What term best describe this problem?

Scarcity

GDP determines

a country's success, recessions and depressiosn

Which would not be classified by economist as land?

a hydroelectric dam

Which would not be considered as capital by an economist?

a share of corporate stock issued by General Motors

Economic Model

explains how decisions are being made