ECON CH 2

2. a lack of something that is desired
4. the manmade objects—tools, machinery, buildings, or other fabricated goods—used in production; also called physical capital
5. a physical article that has been produced for sale or use
8. a natural resource that cannot be replaced once it is used; examples include oil and coal
11. the tools, machines, and buildings used to produce goods and services
14. money used for investment or production
15. a natural resource that is widely available and in no danger of being used up; examples include sunlight and wind
18. the goods or services generated by the production process
19. the resources used to produce goods and services. Economists define these resources as land, labor, and capital

1. a natural resource that, with careful planning, can be replaced as it is used; examples include forests and fresh water
3. the knowledge and skills people gain from education, on-the-job training, and other experiences
6. work done by someone else for which a consumer, business, or government is willing to pay
7. a formula used to represent the production process: land + labor + capital = goods and services
9. the willingness and ability to take the risks involved in starting and managing a business
10. the manmade objects—tools, machinery, buildings, and other goods—used in production; also called capital goods
12. a resource used in the production process; also known as a factor of production
13. a relationship between two factors, pieces of data, or other variables
16. a measure of the efficiency with which goods and services are produced, stated as a ratio of output per unit of input
17. all the natural resources, including energy, that are used to produce goods and services; one of the factors of production