Factors of Production Vocabulary

The study of how people and countries make decisions about how to use their resources in the most efficient way.

• Growth Rate

• Capital Goods

• Economics

A physical item that can be bought or sold. Ex. Car, clothes, food

• Services

• Goods

• Capital goods

Work performed in exchange for money. Ex. Car repair, hair cut

• Goods

• Services

• Natural resources

People who perform labor; employees

• Capital goods

• Per capita

• Human Capital

Any physical manufactured asset used in work; includes buildings, machinery, vehicles, and technology

• Goods

• Capital Goods

• Human capital

A person who takes on the risk of owning and operating a business

• Entrepreneur

• Production

• Economics

Resources supplied by nature that can be used to develop wealth for a country

• Consumption

• Goods

• Natural Resources

Manufacturing goods for consumer purchase

• Consumption

• Distribution

• Production

Transporting goods to their final destination for consumer purchase

• Consumption

• Distribution

• Production

Buying goods or services

• Consumption

• Distribution

• Production