Glossary Terms:

Is the Price of Gasoline Really Too High?

Glossary terms from:
http://www.econedlink.org/e60


Business

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

Checking Account

A financial account into which people deposit money and from which they withdraw money by writing checks.

Choice

Decision made or course of action taken when faced with a set of alternatives.

Consumers

People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.

Costs

An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.

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.

Distribution

The allocation or dividing up of the goods and services a society produces.

Economics

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

Firms

Economic units that demand productive resources from households and supply goods and services to households and government agencies.

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.

Producers

People and firms that use resources to make goods and services.

Production

A process of manufacturing, growing, designing, or otherwise using productive resources to create goods or services used to to satisfy a want.

Relative Price

The price of one good in relation to the price of another good; a measure of opportunity costs and therefore the price that affects economic decision making.

Resources

The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.

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.

Taxes

Compulsory payments to governments by households and businesses.

Trade

The exchange of goods and services for money or other goods and services.

Utility

An abstract measure of the satisfaction consumers derive from consuming goods and services.

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.