Vocabulary

Capital equipment

goods made by people and used to produce other goods and services. (Intermediate goods).

Consumers

people whose wants are satisfied by using goods and services.

Goods

objects that can be held or touched that can satisfy people's wants.

Human capital

the quantity and quality of human effort directed toward producing goods and services (labor).

Markets

any setting where buyers and sellers exchange goods, services, resources, and currencies.

Natural resources

"Gifts of nature" that are present without human intervention.

Producers

people who use resources to make goods and services (workers).

Services

Activities that can satisfy people's wants.

Trade flow

a model showing the interactions between households and business firms as they exchange goods and services and resources in markets.

Trade/exchange

trading goods and services with people for other goods and services or for money.