Vocabulary

Assembly line

in many factories, an arrangement whereby each worker performs a specialized operation on the work as it is passed along from one to another.

Capital equipment

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

Choice

what someone must make when faced with two or more alternatives.

Consumers

people whose wants are satisfied by using goods and services.

Decision

the act of making up one's mind.

Division of labor

the process whereby workers perform only a single task or very few steps of a major production task, as when working on an assembly line.

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).

Labor-work Markets

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

Natural resources

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

Opportunity cost

the next best alternative that must be given up when a choice is made. Not all alternatives, just the next best choice.

Production/producers

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

Services

Activities that can satisfy people's wants.

Specialize

to make specific or particular

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.