YEAR 9 ECONOMICS GLOSSARY

7. A system which allows private ownership of the factors of production
11. Institution which handles money for households and firms
12. Purchase of new capital
13. All human effort, both physical and intellectual
14. The study of how people use scarce resources to satisfy needs and wants
17. Final users of goods and services to satisfy their needs and wants
18. Income flows that are removed from the Circular Flow model. (savings, tax, imports)
19. Basic units used to make goods and services
20. Payment for use of land
21. Goods and services sold overseas
22. Goods and services bought from overseas

1. A system where all factors of production, distribution and consumption of goods and services are controlled by the government
2. Organization with authority to make decisions for the population
3. An economy where people produce only enough goods and services for their own family
4. Financial assistance given to people by the Government
5. Equipment used to make goods and services
6. Ability to combine all resources to make something (plan, recipe,system etc)
8. Money paid at a particular rate for the money lent
9. An organization that sells goods
10. Physical items used by consumer and services for a profit
15. Reward for the use of resources
16. Income flows which are added to the Circular Flow of Income model (investment, govt. spending, exports)