Glossary of Economic Term (3)

Term	Description
Import	A product brought into a country from a foreign country where it originated.
Income	The money or other form of payment that one receives, usually periodically, from employment, business, investments, royalties, gifts and the like.
Inflation	A general increase in prices coinciding with a fall in the real value of money.
Interest	The annual earnings that are sacrificed when wealth is invested in a given asset or business. The interest sacrificed by investing in a given business is often
Interest Rate	The amount of interest charged for borrowing a particular sum of money over a specified period of time.
Investment	The spending money on stocks, shares and other securities, or on assets such as plant and machinery.
Labour Market	The market that determines wages and the number of jobs based on the supply and demand for workers.
Liquidation	The process of ending a company’s operation by means of closing out the company. The process is initiated by the creditors because of the company is considered bankrupt.
Loss	A decrease in value; the amount by which a thing’s original cost exceeded its later selling price
Macroeconomics	The branch of economic that usually refers to economic issues that concern the performance of the economy on a national scale.
Market	A place of commercial activity in which goods or services are bought and sold; A geographic area or demographic segment considered as a place of demand for particular goods and services; The opportunity for buying and selling goods or services; the extend of economic demand; A securities or commodities exchanges; The business of such an exchange; the enterprise of buying and selling securities and commodities.
Microeconomics	Deals with the economic activity of individuals or small groups.
Money	The medium of exchange authorized or adopted by a government as of its currency (coin and currency are money).
Monopoly	A market structure where only one company exist in given industry. Economists consider monopolies as a market failure because the lack of competition allows monopolies to raise their prices, lower their product quality, slow down innovations and otherwise exploit customers.
Non Renewable Resources	Resources that cannot be replaced once they have been used. Aluminum and natural gas are non-renewable.
Open Economy	An economy that is actively engaged in international trade.
Opportunity Cost	The cost of a resource, measured by the value of the next-best, alternative use of that resource.
Over Consumption	A situation in which some people consume resources at levels beyond their needs, often at the expense of those who can’t meet their basic needs.
Poverty	The condition of being indigent; the scarcity of means of subsistence. Causes of poverty include unemployment, a lack of economic resources such as land ownership, and social factors including discrimination.
Price	The amount of money or other consideration asked for or given in exchange for something else; the cost at which something is bought or sold.
Price Ceiling	The highest price at which a buyer is willing to buy; The highest price allowed by a government agency or by some other regulatory institution.

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