ECONOMY VOCABULARY

Economic activity: is what is carried out by humans in order to acquire goods that satisfy consumer needs.

Economic goods: are products and services generated by economic activity.

-Products: goods which are obtained directly from nature or which are turned into something.

-Services: activities carried out by humans to benefit society.

Factors of production: the resources that are required for the generation of economic goods.

Land: the environmental resource.

Rent: is the amount money that you have to pay to use a piece of land

Labor: mental and physical efforts of people applied to the production of goods and services.

Wages: are the amount of money that is regularly paid to them for the work that they do

Capital: is the money, buildings, and machinery and equipment used to produce goods and services.

Interest: is extra money that you receive if you have invested a sum of money

Entrepreneurship: is the risk-taking resource.

Profit motive: possibility of making money.

Economic agents: those elements that have a role in converting the factors of production into goods and services.

Primary sector: activities involved in obtaining resources directly from raw materials, including agriculture, livestock, fishing, forestry and mining.

Secondary sector: activities involved in converting raw materials into manufactured products (industry) or building houses and infrastructure.

Tertiary sector: activities that provide services for example: education, trade, tourism..

Economic system: the way a country organizes, produces. Distributes and administers its material and human resources and the economic goods that these generate, in order to provide for high level of well-being.

Market economy: companies buy and sell products and services freely

Planned economy: the state controls all the factors of production.

Subsistence economy: based on production for self-consumption

Price: is the amount of money that you have to pay in order to buy it

Natural resources: thing a person or country has that can be used or economic benefit.

Supply: the amount of a product that producers offer for sale at a specified price

Demand: the amount of a product or service that consumers purchase at a specified price

Consumer: person who uses goods or services.

Profit: difference between what it cost to make something or provide service what it is sold for.