Economics

Determinants of Demand

Factors other than the price of a good or service that change (shift) the demand schedule, causing consumers to buy more or less at every price. Factors include income, number of consumers, preferences and prices of related goods.

Determinants of Supply

Factors other than the price of a good or service that change (shift) the supply schedule, causing producers to supply more or less at every price. Factors include number of producers, production costs, and technology and productivity.

Profit

Income received for entrepreneurial skills and risk taking, calculated by subtracting all of a firm's explicit and implicit costs from its total revenues.

Productive Resources

Natural resources, human resources, capital resources and entrepreneurship used to make goods and services.

Markets

Places, institutions or technological arrangements where or by means of which goods or services are exchanged. Also, the set of all sale and purchase transactions that affect the price of some good or service.

Factors of Production

Productive resources; what is required to produce the goods and services that people want; natural resources, human resources, capital goods and entrepreneurship.

Production

The act, process or result of manufacturing or refining something.

Quantity Demanded

The amount of a good or service people will buy at a given price in a given period of time.

Quantity supplied

The amount of a good or service sellers are willing and able to offer at a given price in a given period of time.

Price

The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.

Productivity

The amount of output (goods and services) produced per unit of input (productive resources) used.

Resources

The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.

Equalibrium Price

The price at which the quantity demanded by buyers equals the quantity supplied by sellers; also called the market-clearing price.

Labor

The quantity and quality of human effort available to produce goods and services.

Demand

The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.

Innovation

A new idea or method.

Specialization

A situation in which people produce a narrower range of goods and services than they consume. Specialization increases productivity; it also requires trade and increases interdependence.

Division Of Labor

An arrangement in which workers perform only one step or a few steps in a larger production process (as when working on an assembly line).

Economic Growth

An increase in real output as measured by real GDP or per capita real GDP.

Incentive

Any reward or benefit, such as money, advantage or good feeling, that motivates people to do something.