Economics Fundamentals: Institutional Sectors, Production Types, and Market Mechanics

Vocabulary flashcards covering core concepts from economics lecture notes, including institutional sectors, types of goods and services, production categories, and market supply/demand principles.

Secteur Institutionnel (Institutional Sector)

A grouping of economic agents that share the same principal function and similar economic behavior.

Ménages (Households)

An institutional sector whose main function is consumption. Their income sources include labor income, transfer income, and wealth/patrimony.

Sociétés Non Financières / SNF (Non-Financial Corporations)

An institutional sector whose primary function is to produce market goods and non-financial services through the sale of their production.

Sociétés Financières / SF (Financial Corporations)

An institutional sector (banks and insurance companies) that supplies financial means of payment, manages deposits and savings, and distributes credit.

Administrations Publiques / APU (General Government)

An institutional sector that produces non-market services and redistributes resources. It is funded through compulsory levies, including taxes and social contributions.

ISBLSM (Non-Profit Institutions Serving Households)

Organizations that produce non-market goods and services for households, financed by voluntary contributions, membership fees, subsidies, and non-market sales.

Bien (Good)

A physical, material, and storable product resulting from economic production.

Service

An immaterial, non-storable activity or action provided to consumers.

Production Marchande (Market Production)

Goods and services sold at a price equal to or greater than $50\%$ of their production cost.

Production Non Marchande (Non-Market Production)

Services provided free or almost free, at a price strictly below $50\%$ of their production cost.

Reste du Monde (Rest of the World)

The set of non-resident economic agents that maintain economic relations with resident agents for a period of at least $1\text{ year}$.

Collectivités Territoriales (Local Authorities)

Local public administrative bodies (regions, departments, communes) that operate with their own budget and resources, such as property taxes.

Administrations de Sécurité Sociale (Social Security Administrations)

Public administrative bodies (e.g., CPAM, CAF) that collect social contributions to distribute social benefits.

Consommation Intermédiaire (Intermediate Consumption)

The value of goods and services fully incorporated or destroyed during the production process (e.g., leather used in shoes, electricity).

Investissement (Investment)

The purchase of durable means of production used repeatedly in the production process for a duration exceeding $1\text{ year}$.

Marché (Market)

The place or mechanism where supply and demand interact to set the price and quantity exchanged.

Loi de la Demande (Law of Demand)

The economic rule stating that as the price of a good increases, the quantity demanded decreases, and when the price decreases, the quantity demanded increases.

Loi de l'Offre (Law of Supply)

The economic rule stating that as the price of a good increases, the quantity supplied increases, and when the price decreases, the quantity supplied decreases.

Prix d'Équilibre (Equilibrium Price)

The specific price level at which the quantity supplied by producers exactly equals the quantity demanded by consumers.

Prix Plafond (Price Ceiling)

A legal maximum price set on a market, which can create market imbalance when set below the natural equilibrium price.