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- Economics: The branch of knowledge concerned with the production, consumption and transfer of wealth.
- The Economic Problem: The fact that we have unlimited wants, but limited resources.
- Needs: Something that is necessary for survival or to live a healthy life.
- Wants: Something that is NOT necessary for survival, but is desired.
- Goods: Physical objects produced by producers to be sold to consumers.
- Services: Work provided to consumers in return for money.
- Producer: Companies who create and distribute goods and services in return for payment.
- Consumer: The general public who uses (consumes) the goods and services provided by the producers.
- Factors of production: The four key resources needed for production. It includes land, labour, capital and enterprise. They are provided by households.
- Resources: All natural, human and man-made aids of production of goods and services
- Land: Natural resources such as forests and oceans.
- Labour: Physical or mental work provided by humans.
- Capital: Machinery created in order to aid the process of production.
- Enterprise: The management of the three other resources. It is also the ability to take risks and make profit.
- Entrepreneur: Someone who owns and runs a business.
- Complimentary want: Something that accompanies a main object or want, e.g. ice-cream ---> cone
- Substitute want: A replacement or similar option to another want, e.g. burger ---> sandwich
- Collective want: Something that is wanted by a large group of people such as a town or city. This could be something like a hospital or library.
- Income: Money acquired on a regular basis in return for work.
- Employee: A person who works for a business.
- Wage: A set amount of money earned per hour or week. Jobs such as hairdressers, restaurant workers, check-out staff and the like are normally paid wages.
- Salary: A set amount of money normally paid bi-weekly or monthly, but is expressed as a yearly sum. Salaries are normally paid to "professionals" such as teachers, people in the medical profession and any other jobs that require formal education.
- Dividends: Money paid to shareholders from the company's profit.
- Awards: The set hours and minimum wage of an employee.
- Commission: Money paid to someone who works on behalf of someone else. This money is a portion of the total gain from a sale. Examples of people who earn commissions are real-estate agents and agents for celebrities.
- Royalties: Money earned per sale of an individual item. People who earn royalties are musicians and authors.
- Penalty rates: The extra money someone is paid when they work overtime or on weekends/public holidays.
- Fringe benefits: Free or discounted goods or services given to employees of a company.
- Fees: Money earned from each individual customer served. Fees are usually earned by self-employed professionals.
- Income from rent: Money earned from renting your house out to somebody in return for payment. If you do this, you are called a landlord.
- Income from lending money: Putting your money into a bank or building society for other people to use eventually gets you interest from it after a period of time.
- Profit: The amount of money left over after all business expenditures have been paid.
- Income from inherited wealth: Money earned from inheritance (someone who has died has left money for you in their will)
- Winnings: Acquiring money from winning competitions, the lottery or going on game shows.
- Government payments: Money paid to people who are incapable of working. This includes injured people, the disabled, pensioners and carers.
- Factors of consumptions: Things that affect your choices when deciding if or what to buy. This includes age, gender, culture, environment, habit and so on.
- Unequal income distribution: The fact that some people get paid higher or lower amounts than others, and the reasoning for it.
- Department Store: Large shops that sell a wide variety of goods. They are arranged in sections such as gardening, clothing and cooking. They use loyalty systems to encourage customers, and pride themselves on "high quality" items.
- Discount Store: Shops that sell cheap items. Their range is less extensive than a department store. They usually have their own brand of items and promote value for money.
- Specialty Store: Shops that specialise in one type of item, such as shoes, glasses or a certain brand. They are often quite expensive.
- General Store: These shops are like small supermarkets. They are often family owned and are small in terms of size and range. Their prices can be higher than supermarkets.
- Supermarkets: Large chains of shops that sell food and common household goods. They are usually cheaper than specialty and general stores, because of their high turnover.
- Circular flow of income: This is a basic way of understanding how different parts of the economic system fit together. The circular flow of income shows connections between different sectors. It revolves around flows of goods and services and factors of production between firms and households.
- Leakages: Non-consumption uses of income, including saving, taxes, and imports.
- Injections: An addition to the income of firms which does not normally arise from the expenditure of households e.g. changes in investment, government spending or exports.
aug 8 2013 ∞
aug 8 2013 +
aug 8 2013 +