Glossary Terms:

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

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

The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.

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

The price at which the quantity demanded by buyers equals the quantity supplied by sellers; also called the market-clearing price.

A situation in which decisions made by one person affect decisions made by other people, or events in one part of the world or sector of the economy affect other parts of the world or other sectors of the economy.

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.

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.

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.

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

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.

The amount of a good or service sellers are willing and able to offer at a given price in a given period of time.

An exchange of goods or services for money.

Use money now to buy goods and services.

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.

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.