Households consume the goods and services that firms produce. Land: All the natural resources for producing goods and services. The resources used in production are called inputs and the goods and services produced are called output. © copyright 2003-2021 Study.com. Labor And Capital C. Land, Labor, Capital, And Entrepreneurship D. Land, Labor, Stocks And Bonds Factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Quizzes. Factories, storage, transportation, and machinery are all examples of _____________ goods. Factors of production are those resources that help in the production of goods and services in an economy. wages. When individuals weigh costs and benefits, their economic decisions are ________ and purposeful. True : Both individuals and societies have to deal with a shortage of resources. Resources. This is the miracle of the modern monetary economy. 7. Income Approach - A method of calculating GDP by adding up all payments to owners of resources used to produce output during the year. Question: The Resources That Are Used To Produce Goods And Services - _____ Are Factors Of Production. All other trademarks and copyrights are the property of their respective owners. C) government goods and services. The concept at the core of economics that "there is no free lunch" reflects the notion that __________. Intro to Excel: Essential Training & Tutorials, Internet & Social Media Marketing: Help & Review, International Retailing Strategy & Operations, GED Social Studies: Civics & Government, US History, Economics, Geography & World, Introduction to Management: Help and Review, Introduction to Business: Homework Help Resource, Business Math Curriculum Resource & Lesson Plans, Principles of Microeconomics Syllabus Resource & Lesson Plans, NYSTCE Business and Marketing (063): Practice and Study Guide, Biological and Biomedical Common examples of capital include buildings, machinery, railways, roads, and ships. In this figure, obtaining more books by giving up some movies is a called a(n) ___________; whereas losing two books in order to gain 1 movie is refereed to as ________ cost. which of the following are ways of expressing the meaning of ceteris paribus? Money is used to acquire the productive resources that are used to produce goods and services. ECONOMICS Production Notes MODULE - 3 Producing Goods and Services 56 example, for the production of an output called rice, we require inputs such as agricultural land, seeds, fertilizers, plough, water, pesticides, diesel to run tractor etc. expressed as the tendencies of average consumers, workers, and firms. 4 Key Resources - The four basic kinds of resources used to produce goods and services: land or natural resources, labor or human resources, capital, and entrepreneurship.. In which of the following ways do capital goods differ from consumer goods? Individuals and institutions look for and pursue opportunities to increase their utility/ Individuals and institutions weigh the costs and benefits of their decisions/ individuals and institutions allocate their resources to maximize their satisfaction, The satisfaction or pleasure obtained from consuming a good or service. 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