Economics: Chapter 1 Test Review

An item that is used in the production of other goods and services.

• Capital Resources

• Credit

• Entrepreneur

• Money

Form of exchange that allows consumers to use an item with a promise of repayment over a specified time.

• Credit

• Barter

• Consumer

• Needs

Someone who undertakes and develops a new business or product.

• Entrepreneur

• Want

• Producer

• Consumer

To exchange goods and services without the use of money.

• Barter

• Trade

• Exchange

• Needs

The people who buy goods and services.

• Consumer

• Producer

• Need

• Want

Goods and services that are required to live.

• Needs

• Wants

• Service

• Utility

Any material provided by nature to produce goods and services.

• Natural Resources

• Human Resources

• Factors of Production

• Capital Resource

People who work to produce goods and services.

• Human Resources

• Natural Resources

• Production Possibilities Curve

• Exchange

Any item that is commonly accepted in exchange for goods, services, and the settling of debts.

• Money

• Exchange

• Barter

• Needs

A complex procedure split into small tasks, enabling workers to "specialize".

• Division of Labor

• Interdependence

• Capital Resources

• Scarcity