Glossary Terms:

The Economics of the Family Farm

Glossary terms from:


One of many choices or courses of action that might be taken in a given situation.


The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.


The study of how people, firms and societies choose to allocate scarce resources with alternative uses.


Payments for goods and services.


A practice or arrangement whereby a company provides a guarantee of compensation for specified forms of loss, damage, injury or death. People obtain such guarantees by buying insurance policies, for which they pay premiums. The process allows for the spreading out of risk over a pool of insurance policyholders, with the expectation that only a few policholders will actually experience losses for which claims must be made. Types of insurance include automobile, health, renter's, homeowner's, disability and life.


Money paid regularly, at a particular rate, for the use of borrowed money.


"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 natural resources.


The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.


The exchange of goods and services for money or other goods and services.