| A | B |
|---|
| Factors of Production | the economic resources needed to produce goods and services. |
| Land | all the human time, effort, and talent used to produce goods and services. |
| Capital Resources | Made and used by people and kept to use in producing and distributing goods and services. |
| Entrepreneurship | the bringing together of all the factors using ingenuity, skill, vision, and willingness to take risks necessary for starting a new business enterprise. |
| Labor | the countries workforce. |
| Marginal Utility | The benefit that one more instance of an item will give us (when consumed in a certain time period) and therefore what we’re willing to pay for it. |
| Diminishing Marginal Utility | The decline in the benefit that each additional instance of an item brings when consumed. |
| Total Utility | The sum of all the benefit gained from the consumption of all the instances of an item, in the same time period (as indicated by what we’re willing to pay for them). |
| Supply | Refers to the quantity of goods or services that businesses are willing and able to provide. |
| Demand | The quantity of goods or services that consumers are willing and able to buy. |
| Wants | Things you desire. |
| Needs | Things you that are required to live. |
