Economics Vocab

5. Inputs that change in amount based on the level of production, such as labor or raw materials.
8. Cost Costs that do not change regardless of how much is produced, such as rent or salaries.
9. Inputs that do not vary with the level of production, such as leased equipment.
12. Tools, equipment, and facilities used in the production of goods and services. This includes both physical capital (such as machinery) and human capital (such as skills and knowledge).
14. Capital Tangible assets like buildings and machinery used in producing goods.
15. Rules established by government aimed at influencing market activities, such as production methods, safety standards, and environmental impacts.
17. Marginal Returns Occurs when the marginal product of labor decreases as more workers are employed.
19. Resources utilized in creating goods and services, categorized into land, labor, capital, and entrepreneurship.
20. Marginal Returns Occurs when the marginal product of labor increases as more workers are employed.
21. Cost The cost incurred by producing one additional unit of a product.

1. The initiative to combine land, labor, and capital to innovate, take risks, and create new products or businesses.
2. Cost Expenses related to the day-to-day functioning of a business, including utilities, maintenance, and payroll.
3. Costs Past costs that have already been incurred and cannot be recovered; these should not affect future economic decisions.
4. Human effort, including physical and intellectual contributions, used in the production of goods and services.
6. All natural resources used in production, such as minerals, forests, and water.
7. Capital The skills and knowledge that individuals acquire through education and training, enhancing their productivity and earning potential.
10. A tax imposed on specific goods, such as tobacco or alcohol, usually to discourage consumption or generate revenue.
11. A financial contribution provided by the government to support a business, lowering the cost of production and encouraging more output.
13. Cost Costs that vary with the level of output, such as raw materials and utilities.
16. Cost The cost of forgoing the next best alternative when making a decision.
18. Cost The sum of fixed and variable costs associated with the production of goods and services.