Ch2 Economic Resources and Systems

scarcity

The shortage of economic resources

factors of production

The economic resources used to produce goods and services

natural resources

Raw materials found in nature used to produce goods

human resources

The knowledge, efforts, and skills people bring to their work, also called labor

capital resources

Things such as buildings, materials, and equipment used to produce goods and services

entrepreneurial resources

The initiative to improve goods and services or create new ones

economics

The study of how society chooses to use resources to produce and distribute goods and services for people's consumption

market economy

A system in which economic decisions are made in the marketplace according to the laws of supply and demand

demand

The amount of goods and services that consumers are willing to buy at various prices

supply

The amount of goods and services that producers will provide at various prices

equilibrium price

The price at which the amount of goods producers supplyh meets the amount of goods consumers demand

command economy

A system in which a central authority such as the state makes the key economic decisions

mixed economy

A combination of a command and a market economy

scarcity

The shortage of economic resources

factors of production

The economic resources used to produce goods and services

natural resources

Raw materials found in nature used to produce goods

human resources

The knowledge, efforts, and skills people bring to their work, also called labor

capital resources

Things such as buildings, materials, and equipment used to produce goods and services

entrepreneurial resources

The initiative to improve goods and services or create new ones

economics

The study of how society chooses to use resources to produce and distribute goods and services for people's consumption

market economy

A system in which economic decisions are made in the marketplace according to the laws of supply and demand

demand

The amount of goods and services that consumers are willing to buy at various prices

supply

The amount of goods and services that producers will provide at various prices

equilibrium price

The price at which the amount of goods producers supplyh meets the amount of goods consumers demand

command economy

A system in which a central authority such as the state makes the key economic decisions

mixed economy

A combination of a command and a market economy