Lesson Flashcards: Factors of Production

Natural resources that can be utilized for the production of new goods and services

The organization of resources, risk-taking, and innovation by individuals known as entrepreneurs for the production of new goods and services

The process through which existing resources are utilized to obtain new goods and services

The human efforts utilized for the production of new goods and services

The decreased value of capital resources due to the development of more efficient technologies or the changing appetites of consumers

The final use (consumption) of fixed or circulating capital during the production processes of goods or services

The improvement in the quality of life or living standards for individuals in the economy

Capital resources that can be used multiple times to produce new goods and services (e.g., factory machines and shovels)

Capital resources utilized for the production of new goods and services (e.g., cars, pencils, or computers produced by humans or human activity)

The increase in the total output of production in the economy