What Does A Dollar Really Buy?
Glossary terms from:
A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.
Any activity or organization that produces or exchanges goods or services for a profit.
A written order to a financial institution directing the financial institution to pay a stated amount of money, as instructed, from the customer's account.
People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.
Spending by households on goods and services. The process of buying and using goods and services.
An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.
The allocation or dividing up of the goods and services a society produces.
Payments for goods and services.
Tangible objects that satisfy economic wants.
Individuals and family units that buy goods and services (as consumers) and sell or rent productive resources (as resource owners).
Accommodation in houses, apartments, etc.
Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.
A rise in the general or average price level of all the goods and services produced in an economy. Can be caused by pressure from the demand side of the market (demand-pull inflation) or pressure from the supply side of the market (cost-push inflation).
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.
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.
The quantity and quality of human effort available to produce goods and services.
One who lends; may be an individual or a business.
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.
Narrowly defined by economists as currency in the hands of the public plus checking-type deposits; also called M1. Other definitions of the money supply (M2, M3) include various savings deposits, money market deposits and money market mutual fund balances.
The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.
The weighted average of the prices of all goods and services in an economy; used to calculate inflation.
In a credit arrangement, the total amount spent during the billing cycle.
Property such as land, houses and office buildings.
Payments for labor resources; unlike wages, not explicitly based on the number of hours worked. See also Wages.
Money set aside for a future use that is held in easily-accessed accounts, such as savings accounts and certificates of deposit (CDs).
Activities performed by people, firms or government agencies to satisfy economic wants.
A federal system of old-age, survivors', disability and hospital care (Medicare) insurance which requires employers to withhold (or transfer) wages from employees' paychecks and deposit that money in designated accounts.
A good or service that may be used in place of another good or service; examples include tap water for bottled water (or vice versa) and movies for concerts (or vice versa).
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).
Compulsory payments to governments by households and businesses.
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.