Glossary Terms:

Baseball Economics 201

Glossary terms from:
http://www.econedlink.org/e908


Business

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

Economics

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

Factors of Production

Productive resources; what is required to produce the goods and services that people want; natural resources, human resources, capital goods and entrepreneurship.

Income

Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.

Investment

The purchase of capital goods (including machinery, technology or new buildings) that are used to produce goods and services. In personal finance, the amount of money invested in stocks, bonds, mutual funds and other investment instruments.

Labor

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

Money

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.

Product

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

Production

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

Return

Earnings from an investment, usually expressed as an annual percentage.

Revenue

The money a business receives from customers who buy its goods and services. Not to be confused with profit.

Salaries

Payments for labor resources; unlike wages, not explicitly based on the number of hours worked. See also Wages.

Salary

A regular payment, often at monthly or biweekly intervals, made by an employer to an employee, especially in the case of professional or white-collar employees. Salaries are paid for services rendered and are not based on hours worked.

Save

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