Glossary Terms:

U.S. Senate Rejects Minimum Wage Bill

Glossary terms from:
http://www.econedlink.org/e27


Alternative

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

Decision

A conclusion reached after considering alternatives and their results.

Demand

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

Economic Equity

The application of our concepts of what is "fair" or "unfair" and what is "right" or "wrong" to an economic policy. Ultimately deals with the distribution of income and wealth.

Economic Freedom

The freedoms of the marketplace--the freedom of consumers to decide how they wish to allocate their spending among various goods and services; the freedom of workers to choose to change jobs, join unions and go on strike; the freedom of individuals to establish businesses and to decide what to produce and when to change their pattern of production; and the freedom of savers to decide when and where to invest their savings.

Equity

Stock, both common and preferred. Also, the value of mortgaged property after accounting for charges against it or money owed.

Full Employment

The natural rate of employment; generally considered to be about 93-95 percent of the labor force, allowing for frictional unemployment of 5-7 percent.

Goal

Something a person or organization plans to achieve in the future; an aim or desired result.

Inflation

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).

Job

A piece of work usually done on order at an agreed-upon rate. Also a paid position of regular employment.

Labor

The quantity and quality of human effort available to produce goods and services.

Markets

Places, institutions or technological arrangements where or by means of which goods or services are exchanged. Also, the set of all sale and purchase transactions that affect the price of some good or service.

Price

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.

Price Ceiling

A legally established maximum price that may be charged for a good or service.

Price Floor

A legally established minimum price that may be charged for a good or service.

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.

Unemployment

The number of people without jobs who are actively seeking work.

Wage

Payments for labor services that are directly tied to time worked, or to the number of units of output produced.

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.

Workers

People employed to do work, producing goods and services.