| A | B |
|---|
| economics | the body of knowledge that relates to producing & using goods and services that satisfy human wants. |
| economic wants | the desire for scarce material goods & services. |
| non-economic wants | desire for nonmaterial things that are not scarce. |
| utility | the ability of a good or service to satisfy a want. |
| producer | anyone who creates a utility |
| factors of production | land, labor, capital goods, and management-the four basic resources that are combined to create useful goods and services. |
| natural resources | anything provided by nature that affects the productive ability of a country. |
| labor | the human effort, either physical or mental, that goes into the production of goods & services. |
| human capital | the accumulated knowledge & skills of human beings-the total value of each person's education and acquired skills. |
| capital goods | building, tool, machines, and other equipment that are used to profuce other goods but do not directly satisfy human wants. |
