The physical plants, machinery, and equipment used to produce other goods. Capital goods are human-made goods that do not directly satisfy human wants.
A Latin phrase that means while certain variables change, "all other things remain unchanged."
A positive association between two variables. When one variable increases, the other variable increases, and when one variable decreases, the other variable decreases.
The study of how society chooses to allocate its scarce resources to the production of goods and services in order to satisfy unlimited wants.
The creative ability of individuals to seek profits by taking risks and combining resources to produce innovative products.
A zero association between two variables. When one variable changes, the other variable remains unchanged.
A negative association between two variables. When one variable increases, the other decreases, and when one variable decreases, the other variable increases.
The branch of economics that studies decision making by a single individual, household, firm, industry, or level of government.
A simplified description of reality used to understand and predict the relationship between variables.
The basic categories of inputs used to produce goods and services. Resources are also called factors of production. Economists divide resources into three categories: land, labor, and capital.
The condition in which human wants are forever greater than the available supply of time, goods, and resources.