Economics

Economics

The study of how goods and services are produced and distributed.

Market

Historically, a physical place where goods and services are bought and sold.

Production

The creation of goods and services that are sold on the market for profit.

Profit

What producers or firms earn when they sell a product for a higher price than it cost to produce.

Consumption / Purchase

Goods and services made available for consumption, or purchase.

Labor

The work done by humans in an economy to produce goods and services.

Capital

Items (tools, equipment, etc.) used in an economy to produce goods and services.

Traditional Economy

An industrialized economic system, guided by tradition, and often using bartering rather than currency.