| A | B |
|---|
| Consumption goods and services | Goods and services that are bought by individuals and used to provide personal enjoyment
and contribute to a person's quality of life. |
| Capital goods | Goods that are bought by businesses to increase their productive resources |
| Government goods and services | Goods and services that are bought by governments. |
| Export goods and services | Goods and services that are produced in one country and sold
in other countries. |
| Factors of production | The productive resources that are used to produce
goods and services—land, labor, capital, and entrepreneurship. |
| Land | The "gift of nature," or natural resources, that we use to produce
goods and services. |
| Labor | The work time and work effort that people devote to producing
goods and services. |
| Human capital | The knowledge and skill that people obtain form
education, on-the-job training, and work experience. |
| Capital | Tools, instruments, machines, buildings, and other items that have been produced in the past and that businesses now use to produce goods and services. |
| Entrepreneurship | The human resource that organizes labor, land , and capital |
| Rent | Income paid for the use of land. |
| Wages | Income paid for the services of labor. |
| Interest | Income paid for the use of capital. |
| Profit (or loss) | Income earned by an entrepreneur for running a business. |
| Functional distribution of income | The distribution of income among the factor of production. |
| Personal distribution | The distribution of income among households. |
