Economics

Pertaining to the production, distribution, and use

of income, wealth, and commodities.

Traditional Economy

An economic system in which decisions about

production and consumption are based on

custom and tradition.

Free Enterprise System

An economic system in which people are free to

operate their businesses as they see fit, with little

government interference.

Capitalism

An economic system based on private ownership

and on the investment of money in business

ventures in order to make a profit.

Command Economy

An economic system in which economic decisions

about production and distribution are made by

some central authority

Laissez Faire

A policy based on the idea that government

should play as small a role as possible in the

economy

Consumer

A person who uses goods or services

Good

An article of trade. A product created to satisfy a

human want.

Commodity

A good that is the same no matter who produces

it.

Service

Work done by one person or group that benefits

another but does not produce a physical product

Capital

Any form of wealth that can be used to produce

more wealth

Capital Resource

A tool, machine, or building that people use to

produce goods and services. It also includes

money.

Human Resource

The people who make products or provide

services (the most expensive part of producing

goods and services)

Natural Resource

Any material in nature that people use and value

Opportunity Cost

The best alternative that is given up, when a

choice or decision is made.

Entrepreneur

A person who risks time and money to start and

manage a business.

Strike

To stop work in order to get an employer to meet

certain demands

Robber Baron

A business leader who became wealthy through

dishonest methods

Captain of Industry

An industrious leader who transformed the

American economy through business skills

Philanthropist

a wealthy person who gives money and time to

help make life better for other people

Vertical Integration

Practice where a single entity controls the entire

process of a product, from the raw materials to

distribution

Kickback

A partial refund of the original price of the

product

Monopoly

Exclusive control of a commercial activity

Trusts

Firms or corporations that combine for the

purpose of reducing competition and controlling

prices (establishing a monopoly).

Interest

A fixed charge for borrowing money

Company

A business

Corporation

A business owned by investors who share in its

profits but are not personally responsible for its

debts

Stock

A share in the ownership of a corporation.

Piecework

Employment where a worker is paid a fixed rate

per piece completed, instead of an hourly wage

Distribution

The act of giving or delivering something to

people. The way something is divided or spread

out.

Byproduct

A secondary product that comes from the

manufacturing process. It is not the main product

being produced.

Trade

The skilled practice of a practical occupation (ex:

electrician, carpenter, nurse)

Union

An organization of workers that have come

together to achieve goals that alone, they would

not have the power to achieve.

Tenement

A rundown, often overcrowded, apartment house

barely meeting minimal standards

Gilded

Covered in a thin layer of gold

OR

Having a showy appearance that hides

something of little worth

Progressive

Reformer who works to stop unfair business

practices and corruption in government.