Economics Vocabulary I

Fill in the blank: The factors of production that are used in the production of goods and services are called __________.

• resources

• capital

• labor

• entrepreneurship

Fill in the blank: Materials found in nature that are used as a factor of production are known as __________.

• natural resource

• manufactured goods

• human capital

• financial assets

Fill in the blank: The time, energy, skills, and knowledge that define an individual as a factor of production are referred to as __________.

• human resource

• capital resource

• natural resource

• entrepreneurship

Fill in the blank: A tool, machinery, or item of equipment used as a factor of production is called a __________.

• capital resource

• natural resource

• human resource

• financial resource

Fill in the blank: The innovative, organizational, and managerial skills required to manufacture a product from natural, human, and capital resources are known as __________.

• Entrepreneurship

• Management

• Leadership

• Innovation

Fill in the blank: The inability to satisfy all wants at the same time is called __________.

• scarcity

• abundance

• surplus

• plenty

Fill in the blank: The selection of an item or action from a set of possible alternatives is known as __________.

• choice

• randomness

• guess

• chance

What is given up whenever a choice is made is referred to as __________.

• opportunity cost

• sunk cost

• fixed cost

• variable cost

Fill in the blank: The combining of human, natural, capital, and entrepreneurial resources to make goods or provide services is called __________.

• production

• consumption

• distribution

• investment

Fill in the blank: The using of goods and services is known as __________.

• consumption

• production

• distribution

• exchange