Glossary Terms:

Constitution Costs

Glossary terms from:
http://www.econedlink.org/e355


Budget

A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.

Business

Any activity or organization that produces or exchanges goods or services for a profit.

Economics

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

Free Rider

One who enjoys the benefits of a good or service without paying for it.

Goods

Tangible objects that satisfy economic wants.

Insurance

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

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.

Private Property

A basic institution in a market economy, private property involves the right to exclusive use, legal protection against invaders and the right to transfer property to other. Property rights are defined, enforced and limited through the process of government.

Services

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

Taxation

Taxation is the process in which a charge is imposed upon a taxpayer by a state or a legal equivalent of a state.

Taxes

Compulsory payments to governments by households and businesses.

Unemployment

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

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.