Economics Chapter 2

This is a temporary situation that occurs when there is not enough of a good or service available to satisfy demand

• opportunity cost

• cost

• shortage

• scarcity

Land, labor, capital (and some say entrepreneurship) are

• Factors of production

• goods

• services

• output

Land refers to

• any resource that is man made

• any resource that comes from natural resources

• only farm land

• machines, tools and buildings used to produce goods and services

Human, physical and financial are all types of

• goods

• services

• capital

• production

This type of capital is the money required to obtain others kids of capital.

• financial capital

• human capital

• physical captial

This type of capital is machines, tools and buildings required to produce goods and services

• financial capital

• human capital

• physical captial

This type of capital is the skills and knowledge that people acquire that allows them to produce goods and services.

• financial capital

• human capital

• physical captial

Minerals, oil and natural gas are examples of

• renewable resources

• nonrenewable resouces

• perpetual resources

Forests, fresh water and fisheries are examples of

• renewable resources

• nonrenewable resouces

• perpetual resources

Someone who combines the factors of production to run a company and produce goods or services is

• labor

• human capital

• an entrepreneur