Introduction to Economics

Equilibrium price

the price at which the quantity demanded equals the quantity supplied

Demand

the quantity of a good or service that consumers are willing and able to buy

Microeconomics

the study of the economic behavior and decision making of small units, such as individuals, families, and businesses.

Macroeconomics

the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.

Needs

things that are required in order to live

Loan

An amount of money given to the borrower for a set period of time. After the set time has passed, the money must be paid back plus the lending fee, called interest.

Market Economy

Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets

Exports

Goods and Services sold to other countries

Imports

Goods and services purchased from other countries

Labor

Human effort directed toward producing goods and services

Producers

Individuals or companies that create or provide a certain good (product) or service.

Opportunity Cost

Is what a person sacrifices when they choose one option over another.

Goods

Items purchased to satisfy needs and wants.

Factors/Means of Production

Land, labor, and capital, entrepreneurship; the four groups of resources that are used to make all goods and services

Economics

The study of the production, distribution and consumption of wealth in human society. As well as the study of how people seek to satisfy their needs and wants by making choices.

Capital Resources

The tools, equipment, and buildings that are used to produce goods and services

invest

To commit money to gain a profit or earn interest

cost-benefit analysis

a decision-making process in which you compare what you will sacrifice and gain by a specific action

Trade Policy

a government policy that directly influences the quantity of goods and services that a country imports or exports

Land

all natural resources used to produce goods and services

Capitalism

an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.

Command Economy

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

Consumers

people who buy goods and services

Wants

Desires that can be satisfied by consuming a good or service

lender

A person or organization who makes funds available for others to borrow

Socialism

A system in which society, usually the government, regulates, owns and/or controls the means of production.

Communism

A theory or system of social organization based on the elimination of private property ownership, replacing a profit based economy with one of public ownership and community control.

Services

Actions or activities that one person performs for another.

credit

An arrangement to receive cash, goods, or services now and pay for them in the future.

Innovation

An improvement of an existing technology, product, system, or method of doing something.

Scarcity

Limited quantities of resources to meet unlimited wants

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain

Capital

Money or goods that are used to make products

Debt

Money owed.

Tariffs

Taxes on imported goods

Supply

The amount of goods available, the quantity producers are willing to provide.

Human Resources

The broad category of human efforts, both physical and mental, used to produce goods and services

Interest Rates

The cost of borrowing money, noted as a percentage based on the amount borrowed and time.

Entrepreneurship

The process of starting, organizing, managing, and assuming the responsibility for a business.