Econ terms

Goods and services

Things people buy (goods) and work people do for others (services).

Labor

The work people do to produce goods and services.

Thank Production

The process of making goods or providing services.

Producer goods

Goods used to make other goods (machines, tools, equipment).

Consumer goods

Products bought and used by people.

Markets

Places or systems where buyers and sellers exchange goods and services.

Wholesale

Selling goods in large quantities, usually to retailers.

Retail

Selling goods directly to consumers.

Raw materials

Natural materials used to make products.

Distributed

Delivered or spread to different places or people.

Consumed

Used up by consumers.

Compete

To try to do better than others to attract customers.

Supply

The amount of a product available for sale.

Demand

The desire and ability of people to buy a product.

Inventory

The stock of goods a business has available.

Scarce

Limited; not enough to meet everyone's wants.

Free market economy

An economy where businesses and consumers make most decisions with little government control.

Price support

Government action to keep prices from falling too low.

Entrepreneurs

People who start and run businesses.

Laissez-faire capitalism

An economic system with very little government interference in business.

Free enterprise

An economic system where businesses are privately owned and compete freely.

Capacity

The maximum amount that can be produced.

Operations

The activities involved in running a business.

Profit

Money left after expenses are paid.

Monopolies

When one company completely controls a market.

Oligopolies

Markets controlled by a few large companies.

Business cycle

The pattern of growth and decline in the economy over time.

Saturation

A situation where the market is full and demand stops growing.

Recession

A period when the economy slows down.

Depression

A severe and long-lasting economic downturn.

Inflation

A rise in prices over time.

Savings & loan associations

Financial institutions that accept savings and make loans, especially for homes.