Glossary of Economic Term (4)

Term	Description
Price Control	A form of government intervention in the economy in which a government agency uses its law-making power to regulate the prices at which otherwise voluntary private exchanges may take place.
Producer	An economic agent that converts inputs (factors of production) into output (goods and services) with the goal of maximizing profits from production and sale off those goods and services.
Profit	The excess of revenues over expenditures in a business transaction.
Resources	Anything that is available to an organization to help it achieves its purposes as people, raw materials and other things used to make goods and services, also known as inputs.
Savings	That part of disposable income (income less direct taxes plus state benefits) not spent on goods and services. Savings are therefore any income that is not spent, but put aside. In an economic sense we would also include buying shares or securities as part of this. Savings are a leakage or withdrawal from the circular flow.
Service	An intangible commodity in the form of a human effort, such as labor, skill or advise.
Share	An allotted portion owned by, contributed by, or due to someone; One of the definite number of equal parts into which the capital stock of a corporation or joint stock company is divided.
Subsistence Economy	An economy in which production meets a population’s minimum needs but produces no surplus.
Substitute Products	One of two goods or services that replace each other in either demand or supply terms. If price of A goods increases, demand for B goods increases (in the terms of demand). If price of A goods increases, supply of B good decreases (in the terms of production).
Supply	The amount of goods produced or available at a given price.
Surplus	Production of goods and services beyond the minimum needed to sustain life.
Tax	A government charge that is not a price for a good or service; A compulsory transfer of money (or occasionally of goods or services) from private individuals, institutions or groups to the state.
Trade Barrier	Any impediment to the international movement of goods, services, capital, or other factors of production. Mostly administrated in the form of tariff and quota.
Trademark	An identifiable mark on a product that may be a symbol, words, or both, that connects the product to the trader or producer of that product.
Transaction	The act or an instance of conducting business or other dealings; the exchange of money, goods, or services through buying, selling, or exchange.
Unemployment	A situation which exists when members of the labor force wish to work at the prevailing wage or salary rates for their skills, but cannot get a job. The concept thus refers to "involuntary" unemployment only, rather than the voluntary decision of someone to choose leisure (or productive activity outside the cash economy such as housewifery) rather than gainful employment at prevailing rates of pay.
World Bank	A group of five closely associated international institutions providing loans and other development assistance to developing countries. The five institutions are IBRD (International Bank for Reconstruction and Development), IDA (International Development Association), IFC (International Finance Corporation), MIGA (Multilateral Investment Guarantee Agency), and ICSID (International Centre for Settlement of Investment Dispute). As of July 2000, the largest of these, IBRD, had 181 member countries.

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