Economics key words 1.1 The market system

words i should use or dont understand

dividend

return/ what you get back

finite

having and end or a limit

distribution

act of sharing things among a large group of people in a planned way

opportunity cost

cost of missing out on the next best alternative

expenditure

spending by a government

proportion

part of a number or amount

vocational

training that teaches you the skills you need to do a particular job

variables

something that affects a situation

assumptions

things that you think are true although you have no definite proof

irrational

not based on clear thought or reason

rational

based on clear thought or reason

revenue

money that a business receives from selling goods and services

enterprises

companies, organisations and businesses

commission

the amount of money paid to someone according to the value of goods, shares or bonds they have sold

delegate

to give part of you power or work to someone else, usually someone in a lower position than you

humanitarian

concerned with improving bad living conditions and preventing unfair treatment of people

administration

activities involved with managing and organising the work of a company or organisation

inverse relationship(demand)

when price goes up, the quantity demanded falls and when price goes down the quantity demanded rises

inferior goods

goods for which demand will fall if income rises or rise if income falls

normal goods

goods for which demand will increase if income increases or fall of income falls

substitute goods

goods bought as an alternative to another but perform the same function

complementary goods

goods purchased together because they are consumed together

infrastructure

basic systems and structures that a country needs to make economic activity possible

supply

the amount that produces are willing to offer for a sale at different prices in a given period of time

demand

amount of a good people are willing to by at a given price over a given period of time

proportionate relationship(supply)

when the price goes up, the quantity supplied goes up and when the price goes down the quantity supplied goes down

volatile

changing quickly and suddenly without much warning

ventures

new business activities or projects that involve taking risks

productivity

the rate at which goods are produced, and the amount produced in relation to the work, time and money needed to produce them

indirect taxes

taxes on spending such as VAT