The Crow and the Pitcher
Glossary terms from:
One of many choices or courses of action that might be taken in a given situation.
Any activity or organization that produces or exchanges goods or services for a profit.
Decision made or course of action taken when faced with a set of alternatives.
Attempts by two or more individuals or organizations to acquire the same goods, services, or productive and financial resources. Consumers compete with other consumers for goods and services. Producers compete with other producers for sales to consumers.
A result or effect of an action or decision; may be positive or negative.
An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.
A conclusion reached after considering alternatives and their results.
One who draws upon his or her skills and initiative to launch a new business venture with the aim of making a profit. Often a risk-taker, inclined to see opportunity when others do not.
A characteristic of people who assume the risk of organizing productive resources to produce goods and services; a resource.
Trading a good or service for another good or service, or for money.
Tangible objects that satisfy economic wants.
The quantity and quality of human effort available to produce goods and services.
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.
"Gifts of nature" that can be used to produce goods and services; for example, oceans, air, mineral deposits, virgin forests and actual fields of land. When investments are made to improve fields of land or other natural resources, those resources become, in part, capital resources. Also known as land.
Natural resources, human resources, capital resources and entrepreneurship used to make goods and services.
The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.
Earnings from an investment, usually expressed as an annual percentage.
The chance of losing money.
To keep money for future use; to divert money from current spending to a savings account or another form of investment.
Disposable income (income after taxes) minus consumption spending.
The condition that exists because human wants exceed the capacity of available resources to satisfy those wants; also a situation in which a resource has more than one valuable use. The problem of scarcity faces all individuals and organizations, including firms and government agencies.
Activities performed by people, firms or government agencies to satisfy economic wants.
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.
Use money now to buy goods and services.
The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time. Normally, as the price of a good or service rises (or falls), the quantity supplied of the good or service rises (or falls).
The exchange of goods and services for money or other goods and services.
Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.
Effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.
People employed to do work, producing goods and services.