Glossary terms from:
One of many choices or courses of action that might be taken in a given situation.
A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.
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.
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.
Decision made or course of action taken when faced with a set of alternatives.
An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.
A conclusion reached after considering alternatives and their results.
Reaching a conclusion after considering alternatives and their results.
Tangible objects that satisfy economic wants.
Money paid regularly, at a particular rate, for the use of borrowed money.
The second-best alternative (or the value of that alternative) that must be given up when scarce resources are used for one purpose instead of another.
The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.
The condition that exists because human wants exceed the capacity of available resources to satisfy those wants; also a situation in which a resource has more than one valuable use. The problem of scarcity faces all individuals and organizations, including firms and government agencies.
Activities performed by people, firms or government agencies to satisfy economic wants.
Use money now to buy goods and services.
Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.
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.