Glossary Terms:

Babysitter Shortage in Washington, D.C.

Glossary terms from:
http://www.econedlink.org/e8


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.

Economics

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

Opportunity Cost

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.

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.

Quantity Supplied

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

Resources

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

Shortage

The situation that results when the quantity demanded for a product exceeds the quantity supplied. Generally happens because the price of the product is below the market equilibrium price.

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.

Wage

Payments for labor services that are directly tied to time worked, or to the number of units of output produced.

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.