Transcript Economics Vocab

Economics Vocab
Mr. Embry
• 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.
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