Glossary Terms:

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.

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

Tangible objects that satisfy economic wants.

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

Payments made by individuals and corporations to the federal government (and to some state and local governments) based on income received (both earned and unearned).

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.

Goods, often supplied by the government, for which use by one person does not reduce the quantity of the good available for others to use, and for which consumption cannot be limited to those who pay for the good.

Tax in the form of a percent of the cost of a good or service; paid to local and state governments when goods and services are purchased.

Activities performed by people, firms or government agencies to satisfy economic wants.

Compulsory payments to governments by households and businesses.