2022-2023

Vocabulary Chapter 3. Costs: A General Outlook

TRANSPORT ECONOMICS

FERNANDO GARCÍA FERNÁNDEZ

MÁSTER ICCP
Fernando García Fernández

1. FACTORS OF PRODUCTION
1. Factors of production (Factores de producción): Inputs necessary for the creation of a
good or service. The factors of production are land, labor and capital.
2. Facilities (Instalaciones): Structurally enclosed location or portion thereof at which
employees perform services for their employer.
3. Land (Materias primas): Land includes any natural resource used to produce goods and
services; anything that comes from the land. Some common land or natural resources are
water, oil, copper, natural gas, coal, and forests. Land resources are the raw materials in
the production process.
4. Labor (Mano de obra): Labor is the amount of physical, mental and social effort used to
produce goods and services.
5. Capital (Capital): The total physical and financial resources owned by an economic entity,
obtained through contributions from partners or shareholders, to generate profits or
earnings.
6. Entrepreneurs (Emprendedores): A person who sets up a business or businesses, taking
on financial risks in the hope of profit.
7. Innovators (Innovadores): Entrepreneurs who develops and applies ideas and
technologies that improve goods and services or make their production more efficient.
8. Speculators (Especuladores): Entrepreneurs whose purpose is to seek a place with an
optimal profit in a defined structure.
9. Law of Diminishing Marginal Returns (Ley del rendimiento marginal decreciente): It is
the decrease in marginal revenue of production by increasing one factor of production
while holding all others constant. It states that, in all production processes, the addition of
more than one factor of production while holding all others constant will result in
progressively smaller increases in output per unit.

2. INTERNAL AGENTS
10. Internal agents (Agentes internos): Agents directly related to the transport sector. Those
who pay the costs.
11. Suppliers of transport services (Proveedores de servicios de transporte): Companies
engaged in the transportation of passengers and goods.
12. Purchasers of transport services (Clientes de los servicios de transporte): Users of
transport services.

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Fernando García Fernández

13. Public Authorities (Autoridades públicas): The Administration or the public companies
that depend on it. They are the administrators of the transport services and most of the
time the owners of the transport infrastructures.

3. EXTERNAL AGENTS
14. External agents (Agentes externos) : agents related to the transport sector, whose
intervention is essential to provide the transport service. They are the ones who receive
the cost.
15. Vehicle manufacturers (Fabricantes de vehículos): a person or entity who manufactures,
assembles, or distributes new and unused motor vehicles.

4. COST
16. Production cost (Coste de producción): The summatory factors consumed in the
production of something, or in the provision of some service.
17. External cost (Coste externo): The impact (neither foreseen nor desired) that could appear
when something is produced.
18. Opportunity cost (Coste de oportunidad): What one doesn’t receive because the selection
is already made. The passing up of a profit is understood as a loss, this loss is the
opportunity cost.
19. Costs related with transport infrastructures (Costes relacionados con las infraestructuras
de transportes): These are the costs related to the construction and maintenance of
transportation infrastructure.
20. Costs related with transport services (Costes relacionados con los servicios de
transporte): These are the costs incurred in providing the transport service, those arising
from the activity of transporting something.
21. Fare (Tarifa): Price to be paid by the customer for the provision of a transportation service.
22. Taxes (Impuestos): Mandatory payment or charge collected by local, state, and national
governments from individuals or businesses to cover the costs of general government
services, goods, and activities.

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