Economics: Fundamentals, Sectors, Systems, and Globalization

Vocabulary flashcards covering the core principles of economics, economic agents, factors of production, economic sectors, economic systems, globalization, and national economic indicators.

Objective of the Economy

To satisfy human material needs through the consumption of goods and services.

Good (Bé)

A tangible product produced to satisfy human needs.

Service (Servei)

An immaterial or intangible good provided to satisfy needs.

Producers (Productors)

Individuals or entities that intervene in the creation of goods and services in order to obtain a profit.

Consumers (Consumidors)

Individuals who acquire goods and services through monetary payment.

Phases of Economic Activity

The three stages comprising the production of goods (using natural resources, technology, and human labor), distribution (getting goods to consumers), and consumption (exchanging goods for payment).

Primary Sector

Economic activities focused on extracting and gathering raw materials directly from nature to be consumed or processed by industry, including agriculture, livestock farming, fishing, and forestry.

Secondary Sector

Economic activities dedicated to transforming raw materials into manufactured or processed goods, including mining, energy, construction, and manufacturing industry.

Tertiary Sector

Economic activities dedicated to providing services to people, such as education, transport, healthcare, and leisure.

Natural Resources (Factors of Production)

Elements derived from nature and the physical environment used in production, such as raw materials and energy sources.

Labor (Treball)

Human productive effort provided by individuals to businesses or the state in exchange for a salary.

Physical Capital

Durable manufactured assets used in the production process, such as facilities, equipment, and machinery.

Financial Capital

Money and monetary funds allocated for investment and economic operations.

R&D / I+D (Research and Development)

Technological knowledge and scientific advances applied to the creation and improvement of production processes.

Economic Agents

The key actors in an economy: individuals/households (who supply labor for wages), companies (which produce and distribute goods), and the state/public sector.

Economic System

A set of established rules and customs that organize and govern the production and exchange of goods and services.

Market Economy (Capitalism)

An economic system characterized by private property, free initiative, and free competition between firms, where prices and quantities are regulated by the market.

Planned Economy (Communism)

An economic system in which the state is the sole owner of all means of production and distribution, controlling all economic activity.

Mixed Economy

An economic system founded on the core principles of capitalism where the state actively intervenes to correct social inequalities.

Law of Supply and Demand

The market principle governing price determination; when demand increases relative to supply, prices rise, whereas older inventory or excess supply leads to price reductions.

Globalization

A universal process characterized by growing economic interconnection and interdependence among different countries.

Gross Domestic Product (GDP / PIB)

The total economic value of all goods and services produced within the geographical borders of a country over the course of one year.

Gross National Product (GNP / PNB)

The total economic value of goods and services produced over a year by companies originating from a specific country, regardless of whether production occurs inside or outside its borders.