Flashcards in Chapter 5 Terms Deck (12):
An increase in the quantity of goods and services a nation can produce.
The production of more goods and ser vices because business firms are using more land, labor, or financial capital.
The production of more goods or services by using existing factors of production with greater efficiency.
Items that are purchased for personal use.
Items that are used to produce consumer goods.
The allocation of limited resources to produce either consumer goods or capital goods.
Consumer goods/Capital goods tradeoff
Describes a business firm that uses a great deal of human labor relative to real capital.
Describes a business firm that uses more automated equipment than human labor.
A viewpoint maintaining that each person in the nation has a right to a part of the nation’s wealth simply because he is a part of the human race.
An equal distribution of the nation’s income regardless of each person’s ability to contribute to its pool of wealth.
A viewpoint maintaining that the only economic right to which citizens are entitled is the right to own and use property free of governmental interference and that the accumulation of wealth is the sole responsibility of each individual.