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Luis Finance Terms

Terms in this set (46)

production
making or growing things to be sold.
division of labor
dividing up a task so that each worker does a different piece
market economy
economic system in which companies are not controlled by the government but decide what they want to produce or sell based on what they believe they can make profit from.
surplus
Extra; more of a product than is needed.
revenue
money received from selling goods or services
want
something you would like to have but don't necessarily
labor
work or workers
producer
people or businesses that provide goods and services
invest
to use money to make more money.
tax
money you pay to the government
borrow
to use someone else's money with permission in return for paying it back later sometimes with interest.
economic system
the way a society organizes the production and consumption of goods and services and answers the question of what how and for whom to produce.
capital resources
goods that are used to produce other goods or services like tools machines or buildings.
traditional economy
economic system where most economic decisions are based on custom and history.
vault
room with thick walls and a strong door where money is stored to keep it safe.
customer
someone who buys a product or service.
need
something you must have.
profit
money a business makes after expenses are paid.
specialization
when workers focus on doing only one part of a job.
opportunity cost
cost of what you are giving up to get something you want more.
goods
things that are produced
tips
small amount of additional money you give someone who performs a service for you
teller
bank worker who takes deposits and pays out withdrawals
services
work that is done for other people
expenses
amount of money you spend on something
budget
plan of how much money can be spent and how.
scarcity
when something is rare or there is not a lot of something
bank
a business that keeps money for customers makes loans and provides other money-related services
loan
sum of money borrowed for a certain amount of time.
deposit
money put into a bank account
distribution
supplying goods to businesses to be sold.
human resources
people and their health education experience training skills and values
economy
the way a society organizes the production and consumption of goods and services and answers the questions of what how and for whom to produce.
interest
money a person pays to borrow money or the money a bank pays depositors for using their money.
consumer
someone who buys and uses goods and services.
costs
money paid or charged for something
limited resources
resources like money or land that are not endless
consumption
buying and using products.
natural resources
resources found naturally on earth that can be used to produce goods and services like oceans air mineral deposits forest and land.
entrepreneur
a person who creates and manage a buisiness.
save
to set aside money to use later to keep money in a bank
income
money a person earns
withdrawal
taking money out of a bank account
spend
to use money to pay for goods or services
command economy
economic system in which government planning groups make the basic economic decisions
production
making or growing things to be sold
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