Factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.
What human made resource is used to produce other goods and services?
Capital is any human-made resource that is used to produce other goods and services.
What two factors contribute to scarcity in the production of goods and services?
Limited natural resources and concentration of resources in a few hands are two main factors that define scarcity.
How is the use of resources used in an economy?
the use of resources in such a way as to maximize the output of goods and services underutilization the use of fewer resources than an economy is capable of using law of increasing costs
How to study economics with Unit 1 flashcards?
Start studying Economics: unit 1. Learn vocabulary, terms, and more with flashcards, games, and other study tools. HomeBrowse Create Search Log inSign up Upgrade to remove ads Only $2.99/month Economics: unit 1 STUDY Flashcards Learn Write Spell Test PLAY Match Gravity Created by Melissa_Matley Terms in this set (40) Economics
Which is a line on a production possibilities curve?
Production Possibility Frontier A line on a production possibilities curve that shows the maximum possible output an economy can produce. Reflects a trade-off Efficiency The use of resources in such a way as to maximize the output of goods and services. Underutilization The use of fewer resources than an economy is capable of using.
What are the factors of production in economics?
Factors of production Resources that are used to make goods and services. Land All natural resources used to produce goods and services. Labor The effort people devote to tasks for which they are paid. Includes the people who use brainpower to design the building. Capital Any human-made resource used to produce goods and services.
