Economics VocabMr. Embry

Vocabulary

• Economics-The social science that deals with the ways that scarce resources are used. It is the study of wealth.

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• Goods-are items that can be seen and touched, such as books, pens, salt, shoes, hats, and folders.

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• Services-are provided by other people, such as doctors, lawn care workers, dentists, barbers and waiters.

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• Factors of Production-the resources used by a company to produce goods and services.

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• Resources-a stock or supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively.

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• Labor-work, especially hard physical work.

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• Land-the part of the earth's surface that is not covered by water, as opposed to the sea or the air.

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• Capital-wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing

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• Needs and wants

• Needs-refer to those goods and services that are essential such as food, clothing, and shelter.

• Wants-those good and services that people would like to have to improve the quality of their lives

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• Opportunity cost-the loss of potential gain from other alternatives when one alternative is chosen.

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• Profit-a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

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• Income-money received, especially on a regular basis, for work or through investments.

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• Investment-the action or process of investing money for profit or material result.

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• Market Economy-an economy in which decisions regarding investment, production and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

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• Traditional Economy-may be based on custom and tradition or command, with economic decisions based on customs or beliefs of the community, family, clan, or tribe.

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• Command Economy-an economy in which production, investment, prices, and incomes are determined centrally by a government.

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• Supply and Demand-the amount of a commodity, product, or service available and the desire of buyers for it

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• Monopoly-the exclusive possession or control of the supply or trade in a commodity or service.

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• Competition-the activity or condition of competing.

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• Money-a current medium of exchange in the form of coins and banknotes; coins and banknotes collectively.

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• Specialization-the act of specializing, or pursuing a particular line of study or work

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• Trade-exchange (something) for something else, typically as a commercial transaction.

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• Barter-exchange (goods or services) for other goods or services without using money.

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• Tariff-a tax or duty to be paid on a particular class of imports or exports.

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• Taxes-a compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.