This listing of economic terms is cumulative among the four different
sections. For example, there will be a new set of terms introduced just
for the high school glossary, however, the high school glossary will also
include all the terms/concepts found in the Primary, Intermediate, and Middle
levels.
| advantage |
something helpful or in a persons' favor |
| alternative |
a possible choice |
| bank |
a business that provides financial services such as cashing checks, making
loans, and paying interest on saving |
| benefit |
something that promotes well-being |
| benefits and cost |
the good and bad points associated with making decisions |
| borrow |
to receive something with the intention of returning it |
| budget |
a spending and saving plan |
| capital resources |
the tools, machines, equipment, and buildings used to produce goods or perform
services |
| choice |
what you have to make when you are faced with two or more possibilities;
a decision |
| consequence |
something that happens as a result of an earlier action or event |
| consumption |
using goods or services to satisfy wants |
| consumer |
a person who buys and/or uses goods or services to satisfy wants |
| credit |
something entrusted to another, a loan |
| credit card |
a card authorizing purchases now in exchange for payment later |
| decision |
a conclusion reached after considering alternatives and their results |
| demand |
the quantities of a product that consumers are willing and able to buy at
all possible prices in a given period of time |
| disadvantage |
something not helpful or not in a person's favor |
| earn |
to receive income for work performed |
| economic problem |
in economic problems, people have to make choices because of scarcity |
| economic system |
The way a society organizes the production, consumption, and
distribution of goods and services. |
| entrepreneurship |
human resources that assume the risk of organizing other resources to produce
goods and services |
| goal |
something a person wants to do, to have, or to be |
| goods |
things that are produced or made; objects that satisfy peoples wants |
| human resources |
the skills and knowledge a person has |
| income |
the gain, usually measured in money, that comes from different sources,
including work |
| interdependence |
a relationship where one's well-being is partly dependent on the behavior
of others |
| interview |
to ask another person specific questions in order to gather specific information |
| limited resources |
not enough resources to satisfy all our wants |
| money |
any generally accepted medium of exchange to buy goods and services |
| obstacle |
something that blocks the way of taking action to achieve a goal |
| opportunity cost |
the alternative you give up when you choose another alternative; the next
best alternative given up when a choice is made |
| plan |
an idea of how to do something that is thought out before the activity is
begun |
| production |
the use of resources to create goods and services |
| resources |
things we use to satisfy our wants |
| resources (productive resources) |
the natural human, and capital resources used int he production of goods
and services Natural resources (also referred to collectively as
"land) are "gifts of nature" and are present without human
intervention. Human resources (also called labor) are the quantity
and the quality of human efforts in production. Capital resources
are goods made by people and used to produce other goods and services. |
| saving |
setting aside income, or money, for a future use |
| savings account |
an account, usually at a bank, from which withdrawals can be made |
| scarcity |
an economic problem that happens when there aren't enough resources to satisfy
people's wants |
| service |
something a worker does for someone else |
| skills |
things a person can do |
| specialization |
the situation in which people produce a narrower range of goods and services
than they consume; results in interdependence with other producers |
| spend |
use earnings or money to buy goods and services |
| supply |
the quantities that producers are willing and able to sell at all possible
prices in a given period of time |
| trade-offs |
giving up some of one thing to get some of another thing |
| unlimited wants |
what we try to satisfy through making choices about how to use our scarce
resources |
| wants |
desires that can be satisfied by consuming a good or service |
| work |
effort by a worker who produces something (a good) or does something (provides
a service) that is valued by someone. work can be thinking effort or physical
effort. Sometimes work is for pay and sometimes it is not. Work is something
almost everyone does. |
| choice |
what someone must make when faced with two or more alternative uses of a
resource (also called economic choice) |
| consumption |
using goods and services to satisfy wants |
| cost/benefit analysis |
an evaluative comparison of the negative points (costs) and positive points
(benefits) in making economic decisions |
| decision |
a conclusion reached after considering alternatives and their results |
| demand |
the quantities of a product that consumers are willing and able to buy at
all possible prices in a given period of time |
| economic system |
the institutional framework that a society uses to allocate its resources
to produce and distribute goods and services. There are three basic approaches:
a traditional-based economic system in which production and distribution
decisions are largely determined by custom, i.e., the way things have been
done in the past; a command economic system in which a central authority
makes the major production and distribution decisions; and a market economic
system in which the major decisions about production and distribution
are made in a decentralized manner by individual households and business
forms following their own self-interest. Every modern economy is a "mixed
system", having some features characteristic of traditional, command,
and market systems. |
| entrepreneurship |
human resources that assume the risk of organizing other resources to produce
goods and services |
| goods |
objects that can satisfy people's wants |
| interdependence |
dependence on others for goods and services; occurs as a result of specialization |
| market |
a setting where buyers and sellers establish prices for identical or very
similar products and exchange goods and/or services |
| money |
any generally accepted medium of exchange to buy goods and services |
| opportunity cost |
the next best alternative that must be given up when a choice is made |
| production |
the use of resources to create goods and services |
| profit |
the difference between revenues and the costs entailed in production |
| resources |
the natural human, and capital resources used in the production of goods
and services. Natural resources (also referred to collectively as
"land) are "gifts of nature" and are present without human
intervention. Human resources (also called labor) are the quantity
and the quality of human efforts in production. Capital resources
are goods made by people and used to produce other goods and services. |
| scarcity |
the basic economic problem that results from trying to satisfy our relatively
unlimited wants with our limited resources |
| specialization |
the situation in which people produce a narrower range of goods and services
than they consume; results in interdependence with other producers. |
| supply |
the quantities that producers are willing and able to sell at all possible
prices in a given period of time |
| unlimited wants |
what we try to satisfy through making choices about how to use our scarce
resources |
| choice |
what someone must make when faced with two or more alternative uses of a
resource (also called economic choice) |
| competition |
buyers and sellers participating in the market |
| consumption |
using goods and services to satisfy wants |
| cost/benefit analysis |
an evaluative comparison of the negative points (costs) and positive points
(benefits) in making economic decisions |
| decision |
a conclusion reached after considering alternatives and their results |
| demand |
the quantities of a product that consumers are willing and able to buy at
all possible prices in a given period of time |
| distribution |
getting goods and services from the producer to the consumer |
| economic institutions |
households and families, formal organizations, such as corporations, government
agencies, banks, labor unions, and cooperatives |
| economic system |
the institutional framework that a society uses to allocate its resources
to produce and distribute goods and services. There are three basic approaches:
a traditional-based economic system in which production and distribution
decisions are largely determined by custom, i.e., the way things have been
done in the past; a command economic system in which a central authority
makes the major production and distribution decisions; and a market economic
system in which the major decisions about production and distribution
are made in a decentralized manner by individual households and business
forms following their own self-interest. Every modern economy is a "mixed
system", having some features characteristic of traditional, command,
and market systems. |
| economic system of the United States |
a market economy organized around a system of private markets in which prices
for goods and services are determined. |
| entrepreneurship |
human resources that assume the risk of organizing other resources to produce
goods and services |
| goods |
objects that can satisfy people's wants |
| interdependence |
dependence on others for goods and services; occurs as a result of specialization |
| market |
a setting where buyers and sellers establish prices for identical or very
similar products and exchange goods and/or services |
| money |
any generally accepted medium of exchange to buy goods and services |
| opportunity cost |
the next best alternative that must be given up when a choice is made |
| production |
the use of resources to create goods and services |
| productive resources |
what is required to produce goods and services that people want. The three
types of productive resources are human resources, natural resources, and
capital resources. |
| productivity |
the amount of output (goods and services) produced per unit of input (productive
resources used.) An increase in productivity means: 1) producing more goods
and services with the same amount of resources; 2) producing same amount
with fewer resources; 3) a combination. |
| profit |
the difference between revenues and the costs entailed in production |
| resources (productive resources) |
the natural human, and capital resources used in the production of goods
and services. Natural resources (also referred to collectively as "land")
are "gifts of nature" and are present without human intervention.
Human resources (also called labor) are the quantity and quality of human
effort in production. Capital resources are goods made by people and used
to produce other goods and services. |
| role of government |
goods and services provided by the government are paid for through taxing
and borrowing; in a market economy the government defines and enforces property
rights and provides standard units of weights, measures, and money. |
| scarcity |
the basic economic problem that results from trying to satisfy our relatively
unlimited wants with our limited resources |
| specialization |
the situation in which people produce a narrower range of goods and services
than they consume; results in interdependence with other producers |
| supply |
the quantities that producers are willing and able to sell at all possible
prices in a given period of time |
| taxes |
mandatory payments by the public to governments (federal, state, and local)
which provide goods and services |
| unlimited wants |
what we try to satisfy through making choices about how to use our scarce
resources |
| absolute advantage |
the situation in which a nation can produce more of a good than another
country can produce with the same quantity of resources |
| aggregate demand |
the total demand for all goods and services produced in an economy (equals
consumption, investment, and government spending, plus net exports) |
| aggregate supply |
the total quantity of goods and services produced in an economy in a given
period of time |
| barriers to trade |
restrictions, such as tariffs and quotas, that discourage trade |
| command economy |
an economic system where a central authority makes the major decisions concerning
production and distribution |
| comparative advantage |
the situation in which a nation can produce a product at a lower opportunity
cost than another nation |
| deflation |
a sustained decrease in the average price level of the entire economy |
| exchange rates |
the price of one nation's currency in terms of another nation's currency |
| fiscal policy |
the use of national government spending and taxation programs to effect
the level of economic activity in such a way as to promote price stability,
maximum employment, and reasonable economic growth |
| global economy |
an economy where what is done in one nation affects the rest of the world,
and what is done in the rest of the world affects that nation |
| gross domestic produce |
the total market value, expressed in dollars, of all final goods, and services
produced in an economy in a given year |
| income distribution |
the manner in which all earned income(wages and salaries, rent, interest,
and profit) in a nation is distributed among income earners |
| inflation |
a sustained increase in the average price level of the entire economy |
| market economy |
an economic system in which the major decisions about production and distribution
are made in a decentralized manner by individual households and business
firms following their own self-interest |
| mixed economy |
an economy having some features chanracteristic of traditional, command,
and market economies (all modern economics are "mixed" and the
"mix" varies from one economy to another) |
| monetary policy |
the actions by the Federal Reserve System that leads to changes in the supply
of money and availability of credit |
| public goods and services |
goods and services provided to the whole society by the government, paid
for through taxing and borrowing |
| traditional economy |
an economy where production and distribution decisions are largely determined
by custom (the way thing have been done in the past) |
| unemployment |
the condition of those who are willing and able to work at current wage
rates, but do not have jobs |
