Economics Terms and Definitions

Unemployment Rate

• the percentage of the nation's labor force who are not working

• the total number of people employed in a country

• the ratio of job openings to job seekers

• the average duration of unemployment for job seekers

fraud

• wrongful or criminal deception intended to result in financial or personal gain

• an honest mistake that leads to financial loss

• a legal transaction that benefits both parties

• the act of providing false information for a legitimate purpose

Human Capital

• the physical assets owned by a company

• the financial resources available for investment

• the knowledge and skills that workers acquire through education, training, and experience

• the technological tools used in production

Gross Domestic Product

• the total value of goods produced and services provided in a country during one year.

• the total amount of money spent by consumers in a year.

• the total value of exports minus imports in a country.

• the total number of goods produced in a country regardless of their value.

Demand

• Consumer willingness and ability to buy products

• The total quantity of goods available in the market

• The amount of money consumers are willing to spend

• The level of production by manufacturers

Tariff

• a tax on imports or exports

• a subsidy for local businesses

• a fee for exporting goods

• a tax on income

Standard of Living

• A minimum of necessities, comforts, or luxuries held essential to maintaining a person or group in customary or proper status or circumstances

• The average income of a population

• The level of education and healthcare available to a community

• The amount of leisure time available to individuals

Entrepreneurship

• the process of starting, organizing, managing, and assuming the responsibility for a business

• a method of investing in stocks and bonds

• the act of creating art and music

• a strategy for improving personal productivity

Quota

• A limit placed on the quantities of a product that can be imported

• A type of tax imposed on imported goods

• A government subsidy for local products

• A regulation that allows unlimited imports

Literacy Rate

• the percentage of people over the age of 15 in a country who can read or write

• the total number of books published in a year

• the average number of years of schooling completed by adults

• the percentage of people who have access to the internet