Economics Glossary

1. market Place where factors of production are bought and sold.
6. All human effort, both physical and intellectual
9. Where actions by one party have impacts on another, particularly economically.
10. Money paid at a particular rate for the money lent
11. Payment per year for labour
14. Income flows which are added to the Circular Flow of Income model (investment, govt. spending, exports)
16. Financial assistance given to people by the Government
17. Institution which handles money for households and firms
21. Goods and services bought from overseas
24. Purchase of new capital
26. Cost The cost of the next-best alternative opportunity
27. Action of only doing one part of the process
28. National Company A company that operates in many countries with independent headquarters in each.(McDonalds)
29. That part of earnings not spent
32. Organization with authority to make decisions for the population
33. market Place where goods and services are bought and sold (Coles, Seek.com, Fremantle markets) Same as Market
35. Used to pay for goods and services
36. Compulsory government levy
38. An economy where people produce only enough goods and services for their own family
40. chain Complex group of firms in many countries each producing a component of a final product.
42. Situation where demand is greater than supply
43. Payment earned by entrepreneurs

2. Final users of goods and services to satisfy their needs and wants
3. A system which allows private ownership of the factors of production
4. Payment per hour for labour
5. Equipment used to make goods and services
7. Basic necessities for life
8. Income flows that are removed from the Circular Flow model. (savings, tax, imports)
12. Basic units used to make goods and services
13. All resources provided by nature
15. Ability to combine all resources to make something (plan, recipe, system etc)
18. The study of how people use scarce resources to satisfy needs and wants
19. A system where factors of production are owned by the government
20. Organisations that make goods and services
22. National Company A company which operates in several countries with its headquarters in the parent country. (Apple)
23. An organization that sells goods
25. Goods and services sold overseas
30. of production Raw materials used to make goods and services (land, labour, capital & enterprise)
31. Reward for the use of resources
32. Physical items used by consumer and services for a profit
34. Goods and services which we desire but don’t need
37. Payment for use of land
39. A system where all factors of production, distribution and consumption of goods and services are controlled by the government
40. Actions done for consumers by producers
41. Place where goods and services are bought and sold.