| A | B |
|---|
| Workers | People employed to do work, producing goods and services. |
| Goods | Tangible objects that satisfy economic wants. |
| Services | Activities performed by people, firms or government agencies to satisfy economic wants. |
| Taxes | Compulsory payments to governments by households and businesses. |
| Sales Revenue | The money a business receives from customers who buy its goods and services. Not to be confused with profit. |
| 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). |
| Wage | Payments for labor services that are directly tied to time worked, or to the number of units of output produced. |
| 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. |
| Job | A piece of work usually done on order at an agreed-upon rate. Also a paid position of regular employment. |
| Production | The act, process or result of manufacturing or refining something. |
| Consumption | Spending by households on goods and services. The process of buying and using goods and services. |
| Economics | The study of how people, firms and societies choose to allocate scarce resources with alternative uses. |
| Interest Rate | The price paid for using someone else's money, expressed as a percentage of the amount borrowed. |
| Borrow | To receive and use something belonging to somebody else, with the intention of returning or repaying it--often with interest in the case of borrowed money. |
| Profit | Income received for entrepreneurial skills and risk taking, calculated by subtracting all of a firm'sexplicit and implicit costs from its total revenues. |
| Economic institutions | Refer to the established laws, customs, organizations or systems that have a strong impact on economic decisions. |
| Federal Reserve | The central bank of the United States. Its main function is controlling the money supply through monetary policy. |
| 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. |
| Market Economy | An economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources and to coordinate the diverse plans of consumers and producers, all of them pursuing their own self-interest. |
| Command Economy | An economy in which most economic issues of production and distribution are resolved through central planning and control |
| Economic Regulation | Economic regulation is the prescription of price and output for a specific industry, often a natural monopoly. Social regulation is the prescription of health, safety, performance, environmental, output and job standards across several industries. |
| Social Regulation | Social regulation is the prescription of health, safety, performance, environmental, output and job standards across several industries. |
| Exchange | Trading a good or service for another good or service, or for money. |
| Money | Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance. |
| Currency | The money in circulation in any country. |
| Deposit | Money put into a financial account. Also, to place money in a financial account. |
| Checking Account | A financial account into which people deposit money and from which they withdraw money by writing checks. |
