1. Economic
Resources I
Economic
Resources II
Vocabulary
Terms
Comparative
or Absolute?
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2. All things that are used in producing goods and services.

3. Resources

4. The quantity and quality of all human effort available to produce goods and services.

5. Labor

6. Includes everything contained in the earth or found in the seas (“gifts of nature”) that can be used to produce goods and services.

7. Land

8. Refers to the skills of people who are willing to invest their time and money to organize the productive resources to create goods and services.

9. Entrepreneurship

10. This includes the money used to start and operate a business as well as the resources and goods used to produce other goods and services.

11. Capital

12. Examples of this include coal, crude oil, trees, and soil.

13. Land

14. Examples of this include part- and full-time workers, managers, and professionals in the private and public sectors.

15. Labor

16. This resource is responsible for organizing all of the factors of production to create the goods and services produced in an economy.

17. Entrepreneurs

18. Examples of this include factories, office buildings, computers, and raw materials processed into a more useful form.

19. Capital

20. Productive resources; what is used to produce the goods and services people want.

21. Factors of Production

22. The condition that exists because human wants exceed the capacity of available resources to satisfy those wants; also a situation in which a resource has more than one valuable use.

23. Scarcity

24. A decision made or course of action taken when faced with a set of alternatives.

25. Choice

26. The basic physical systems of a business or nation
The basic physical systems of a business or nation. Examples include transportation, communication systems, sewage, water and electric.

27. Infrastructure

28. The exchange of goods and services among nations for money or other goods and services.

29. International Trade

30. This occurs when nations rely on other nations to obtain goods and services because they do not have the unique resources and capabilities to produce the goods or services themselves.

31. Interdependence

32. The ability to produce a good or service at a lower opportunity cost than some other producer. This is the economic basis for specialization and trade.

33. Comparative Advantage

34. The ability to produce more units of a good or service than some other producer using the same quantity of resources.

35. Absolute Advantage

36. Brazil has this type of an advantage because it can produce coffee for a lower cost per unit than any other country.

37. Absolute Advantage

38. The United States has this type of advantage at producing high-tech goods like computers, airplanes, and entertainment because of its infrastructure, raw materials, and educated workforce. As a result, many countries import these items from the U.S.

39. Comparative Advantage

40. The U.S. imports clothing from China because it is more cost-efficient for the U.S. to focus on producing high-tech products than clothing. China has this type of advantage.

41. Comparative