Glossary Terms:

Using advertisements (public notices, displays or presentations often based on celebrity endorsements, appeals to authority, bandwagon effects and attractive imagery) to promote the sale of goods or services.

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

Monetary or non-monetary gain received because of an action taken or a decision made.

A trade name used to identify a product produced by a particular company, distinguishing it from similar products produced by competitors.

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

In the context of credit transactions, capacity 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 and future earnings relative to current debt. High earnings and low debt, for example, indicate a strong capacity to make payments on the loan in question.

Attempts by two or more individuals or organizations to acquire the same goods, services, or productive and financial resources. Consumers compete with other consumers for goods and services. Producers compete with other producers for sales to 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.

A legal entity owned by shareholders whose liability for the firm's losses is limited to the value of the stock they own.

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

The opportunity to borrow money or to receive goods or services in return for a promise to pay later.

Misleading methods used by businesses to sell goods or services. Examples include misleading prices, bait-and-switch tactics and false advertising.

A conclusion reached after considering alternatives and their results.

Payments for goods and services.

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

Tangible objects that satisfy economic wants.

Any reward or benefit, such as money, advantage or good feeling, that motivates people to do something.

Money paid regularly, at a particular rate, for the use of borrowed money.

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

A period of time long enough for firms to change the quantities of all the resources they use; the exact amount of time varies depending on the industry.

An economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources and to coordinate the diverse plans of consumers and producers, all of them pursuing their own self-interest.

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.

The fee paid for insurance protection.

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.

A good or service that can be used to satisfy a want.

Income received for entrepreneurial skills and risk taking, calculated by subtracting all of a firm's explicit and implicit costs from its total revenues.

Economic regulation is the prescription of price and output for a specific industry, often a natural monopoly. Social regulation is the prescription of health, safety, performance, environmental, output and job standards across several industries.

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

The chance of losing money.

To keep money for future use; to divert money from current spending to a savings account or another form of investment.

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

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

Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.