1. Goods – tangible commodity 1. Consumer Goods Intended for final use by individuals 2. Capital Goods - Manufactured goods used to produce other goods

2. Services – intangible – we pay others to do something for us

3. Productivity – efficient use of productive resources. Productivity increases when: -More output is produced with the same input -Same output is produced with fewer inputs © www.money.cnn.com

4. Division of Labor – work is arranged so that individual workers do fewer tasks than before © www.johndclare.net

5. Specialization of Labor – factors of production perform tasks that they can do more efficiently than others -applies to all factors of production