Glossary Terms:

Martin Luther King Jr. Day

Glossary terms from:
http://www.econedlink.org/e153


Capital

Resources and goods made and used to produce other goods and services. Examples include buildings, machinery, tools and equipment. In the context of credit transactions, capital is one of the Three Cs of Credit. It is an indicator of how creditworthy a prospective borrower is likely to be as determined by the borrower's current financial assets and net worth.

Economics

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

Human Capital

The health, education, experience, training, skills and values of people. Also known as human resources.

Income

Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.

Investment

The purchase of capital goods (including machinery, technology or new buildings) that are used to produce goods and services. In personal finance, the amount of money invested in stocks, bonds, mutual funds and other investment instruments.

Money

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.

Real Wage

The wage rate adjusted for inflation; the purchasing power of wages, the volume of goods and services that money wages will buy.

Return

Earnings from an investment, usually expressed as an annual percentage.

Supply

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.

Taxes

Compulsory payments to governments by households and businesses.

Work

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.