| A | B |
|---|
| Consumption | The using up of goods and services by consumer purchasing or in the production of other goods. |
| Production | the act of producing; creation; manufacture. |
| Immediate gratification | short term pleasure of a good with no long standing purpose |
| Variable Costs | costs that change with the number of products produced |
| Total costs | adding fixed and variable costs together |
| Marginal Costs | extra cost to produce one additional unit of output |
| Specialization | when people or companies concentrate on goods or services they can produce better than others |
| Assembly line | production where the product moves from station to station with each station specializing in the task they do |
| Factory | place of the production of goods |
| Mass Production | making goods in huge quantities that are usually identical items |
| Innovation | a new idea about an existing product or technique |
| White-Collar workers | non manual labor- management |
| Blue-Collar workers | manual labor |
| Agribusiness | any business that deals with farming or animal husbandry |
| Investment | the outlay of money usually for income or profit |
| Capital goods | machinery required to make products or perform work |
| Consumer Goods | Goods, such as food and clothing, that satisfy human wants through their direct consumption or use |
| Producer Price Index | keeps track of the changes in wholesale prices of goods |
| Law of Diminishing Returns | at some point production of more goods will bring less satisfaction than previous ones |
| Incentives | rewards that are offered to try to persuade people to take certain economic actions |
