Economic glossary Flashcards
Economy
A system that involves the distribution, consumption, production and trade of goods and services.
Natural resources
Resources that come from the nature, above or below the surface. e.g eggs, coal, milk, wood
Labour resources
A person’s intellectual or physical skill that is needed to produce a good or service. e.g baker, plumber, technicians
Capital resources
The man-made goods used to produce other goods and services. e.g machines, coffee machine, ovens, trucks
Macroeconomics
The study of how a whole country’s economy works.
Microeconomics
The study of individual consumers and businesses.
Economist
A person who studies the relationship between the resources that a particular geographic area has and what that area can produce.
Product
A good or a service that is offered for sale. e.g car, eggs, book, iphone
Opportunity cost
Opportunity cost is what one person sacrifices when they choose one option over another one.
Needs
Essentials that we need to survive.
Wants
Non-essentials that we don’t necessarily need for our survival but we desire to have.
Law of demand
The law of demand states that when prices go up, demand goes down, and when prices go down, demand goes up.
Law of supply
The law of supply states that when prices go up, supply increases, and when prices go down, supply decreases.
Scarcity
Scarcity is when resources are limited but human wants and needs are unlimited
Inflation
Inflation is the increase in the prices of goods and services over time.
GDP
Gross Domestic Product is total value of all goods and services produced by a country over a specific period of time usually one year.
Consumer
A person who buys goods or services.
Imports
Imports are goods that are produced in one country and purchased in another’s domestic market
Exports
Goods that are produced in a domestic market and then sold overseas in another country / Goods from a country that is sold to another country.
Globalisation
The process of countries becoming more connected through trade, technology, and culture. It allows goods, services, and ideas to move easily across borders.
Multinational corporation
A company that does business in multiple countries around the world.
Employment rate
The percentage of people who are in a paid job for one or more hours in a week.
Unemployment rate
The percentage of people in the labour force who are actively seeking for a job but cannot find one.
Equilibrium price
Where the quantity demanded by the consumer is equal to the quantity supplied by the producer.
