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Essential Economics Vocabulary List

1. Economics is the study of how limited resources are used by people, businesses, and countries to produce, distribute, and consume goods and services. 2. There are different types of economic systems that answer what to produce, how to produce, and for whom to produce, including market economies, command economies, and traditional economies, with most countries using a mixed economy. 3. Key economic concepts include supply and demand, resources, capital, human capital, imports, exports, and economic interdependence between trading nations.

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854 views1 page

Essential Economics Vocabulary List

1. Economics is the study of how limited resources are used by people, businesses, and countries to produce, distribute, and consume goods and services. 2. There are different types of economic systems that answer what to produce, how to produce, and for whom to produce, including market economies, command economies, and traditional economies, with most countries using a mixed economy. 3. Key economic concepts include supply and demand, resources, capital, human capital, imports, exports, and economic interdependence between trading nations.

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Vũ Việt Link
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© Attribution Non-Commercial (BY-NC)
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  • Economics Vocabulary List

Economics Vocabulary List 1.

Economics: The study of how people, businesses and countries use limited resources, such as money and materials. There are different types of economic systems that all answer the 3 questions: What to produce, ow to produce, !or whom to produce" #. Consumers: $eople who use the %oods and ser&ices. 3. Profit: 'oney that remains after all the costs of producin% a product ha&e been paid. (. Supply: The amount of items to be sold ). Demand: The amount of interest in the item. *. Supply/Demand: The relationship between consumer needs and the amount of items that is a&ailable to be sold. +. Scarcity: ,ot enou%h items for the demand. -. Abundance: . lar%e amount. E/: 0f 0 ha&e 131 students, 0 ha&e an abundance of students. 2. Surplus: 'ore than what is needed. 0f 0 ha&e 3) students and (1 folders, 0 ha&e a surplus of ) folders. 11. Resources: 0tems used to create the product or ser&ice. 3an be renewable or nonrenewable. 11. Capital: 'achines, resources, money and wor4force that is used to produce a %ood5product or ser&ice. 1#. Human Capital: uman labor, wor4ers with the 4nowled%e, s4ills, and e/perience to ma4e the %oods or pro&ide the ser&ices. 13. Market Economy: 6usinesses supply products with little %o&ernment interference based upon consumer demand. 6usinesses use supply and demand to help them determine how much to produce and the price point. 6usinesses also hire based upon supply and demand of 7obs. 1(. Command Economy: The %o&ernment determines what %oods are produced, how much is produced, how it is produced, how it is distributed, and the price of the item. Wa%es are %o&ernment set and the %o&ernment determines who has which 7ob. The %o&ernment controls all aspects of economic life. 1). Traditional Economy: 0ndi&iduals create products based upon resources and tribal or cultural customs and usually produce enou%h to sur&i&e. The indi&idual determines what is produced, how it8s produced and when5where it is sold. 1*. Mixed Economy: . blendin% of all three economies. EVE9: country has a mi/ed economy. 1+. Speciali ation: focusin% on one product or ser&ice. ;sually one becomes s4illed 1-. !DP "!ross Domestic Product#: The total &alue of the %oods and ser&ices that a country produces each year. 12. $ndustries: <er&ices, !inance, 'anufacturin%, .%riculture #1. Entrepreneurs: $eople who start and own pri&ate businesses. #1. $mports: 0tems that are brou%ht into a country to sell ##. Exports: 0tems that are ta4en out of the country to sell. #3. Economic interdependence: Where two or more countries depend on one another to trade in order to meet each country8s demand. #(. Sanction: when countries place restrictions on trade with a certain country in order to force it to chan%e a policy #). Tariff: Ta/es on imported products.

#*. Embar%os: 'ore drastic than sanctions. ,ations refuse to trade with a country at all because of a policy or decision.

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