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Economics Unit 1

Terms

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1: Money
Item that is commonly accepted in exchange for goods, services or payment of debt.
1: Overhead
Sum of a businesses fixed costs except for wages and materials.
1: Luxury
Not necessary for survival, something enjoyable but not necessary
1: Want
Require, need, feel a desire for
1: Necessity
That which is needed for survival
1: Good
Object or material that can be purchased to satisfy human wants or needs.
1: Microeconomics
Study of a single factor of the economy rather than the economy is a whole
1: Specialization:
Focus of a worker on only one aspect of production to improve efficency.
1: Inelastic
Inability to respond quickly or greatly to change in supply or demand due to price.
1: Revenue:
Income from real or personal property
1: Labor
Work that people do for wages
1: Capital
Noun: Wealth used in trade: net worth of business. "You need more capital in order to grow larger in any economic area"
1: Land
In economics, it includes land, timber, oceans and harbors.
1: Monopoly
Market in which a single seller exercises exclusive control over a good or service
1: Supply
Amount of good or service that producers are willing to sell at various prices.
1: Cost
Noun: The price paid or to be paid for a good or service. "The cost of a new car must include tax and licensing"
1: Scarcity
Fundamental condition of economics of limited resources
1. Complementary
Adjective: Commonly used or associated with another product. "We often think of butter as a complementary product when we think of bread"
1: Profit
Difference between revenues recieved and the cost of a good or service to produce.
1: Barter
Noun: Direct exchange of goods and services but no money involved. "Barter is used when money does not exist"
1: Technology
Scientific and technical techniques used to produce products more effectivly.
1: Fluctuate
Change continually, rise and fall constantly
1: Self-Sufficent
Ability to fufill one's need without assistance
1: Elastic
Adjective: Respond greatly to change in supply or price. "Pizza has a very elastic demand when prices rise dramatically"
1: Substitute:
Can be purchased or used in place of another good or service
1: Entreprenuer
Noun: someone who undertakes a new enterprise and risks failure to achieve sucess.
1: Interdependent
Relationship of mutual reliance and influence among people or businesses.
1: Consumer
Noun: one who buys goods or services for personal use. "All of us are consumers and have been since we were born"
1: Resource
Anything used to produce goods or services
1: Depreciation:
Noun: Decrease in value of a capital good because of use or deterioration. "Most of us understand deprecation when we buy cars"
1: Oligopoly
Market in which a few large sellers control most of a good or service

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