Economics and the Economy

The study of how individuals, house holds, and societies choose to use their scarce resources efficiently in order to satisfy their diverse wants.

National or international organization of manufacturers or traders allied by agreement to fix prices, limit supply, divide markets, or to fix quotas for sales, manufacture, or division of profits among the member firms.

Organized traders' exchange in which standardized, graded products are bought and sold.

In economics, direct utilization of goods and services by consumers, not including the use of means of production, such as machinery.

Something that is owed by a person, organization, or country, usually money, goods, or services.

In economics, the allocation of a society's total wealth among various economic groups. Distribution, in that sense, does not refer to the physical marketing or circulation of goods, which is part of the process of exchange, but to the relative well-being and economic wealth of persons and groups.

Technique of economic analysis that expresses economic theory in terms of mathematical relationships and then tests it empirically through statistical research.

Prohibition by a country of the departure of ships or certain types of goods from its ports. Instances of confining all domestic ships to port are rare, and the Embargo Act of 1807 is the sole example of this in American history.

Value of all final goods and services produced within a country within a given time period, usually one year. GDP thus includes the production of foreign-owned firms within the country, but excludes the income from domestically-owned firms located abroad.

Legislation dealing with human beings in their capacity as workers or wage earners.

in economics and politics, doctrine that an economic system functions best when there is no interference by government.

Division of economics concerned with the study of whole (aggregate) economies or systems, including such aspects as government income and expenditure, the balance of payments, fiscal policy, investment, inflation, and unemployment.

Condition in which the basic needs of human beings (shelter, food, and clothing) are not being met.

Materials that can be used to satisfy human needs. Because human needs are varied and extend from basic physical requirements, such as food and shelter, to spiritual and emotional needs that are hard to define, resources cover a vast range of items.

Government program designed to provide for the basic economic security and welfare of individuals and their dependents.

Practice of engaging in business in order to make quick profits from fluctuations in prices, as opposed to the practice of investing in a productive enterprise in order to share in its earnings.

Level of consumption that an individual, group, or nation has achieved. The evaluation of a standard of living is relative, depending upon the judgment of the observer as to what constitutes a high or a low scale.

Branch of mathematics concerned with the collection and interpretation of data.

In classical economics, factors that are said to determine price, by correlating the amount of a given commodity producers hope to sell at a certain price (supply), and the amount of that commodity that consumers are willing to purchase (demand).

Traffic in goods. Conducted by gift, barter, or sale, trade is one of the most widespread of all social institutions.

Lack of paid employment. The unemployed are usually defined as those out of work who are available for and actively seeking work.