Economics
Economics
The terms used in economics
1) Economics: Economics is the study of how people choose to satisfy their wants and how they use means which are scarce but have alternative uses.
2) Scarcity: Scarcity means that the amount of the good or service available is less than the total amount that is demanded by everyone.
3) Capitalistic Economic system: Any country where production and consumption decisions are left to the private individuals who have a right to own property and are free to buy and sell with minimum interference of the government is called a Capitalistic Economic system.
4) Socialistic Economic system: If production and consumption are controlled by the government or the state which also owns the land, buildings and machinery and where the production and distribution of production are planned by the state, is called socialistic economic system.
5) Mixed economic System: it signifies the middle path between capitalism and socialism.
6) land : Land in a broad sense includes not only land used farmers and urban land used for buildings and roads, but also other gifts of nature that come with land like minerals, lakes etc.
7) Labor: Labor includes the physical and mental talents of human beings.
8) Capital: Capital generally means the funds or money that is required to engage in productive activity.
9) Organization: Organization is the way that a person or a company organizes its activities.
10) Entrepreneurs: Entrepreneurs are people who find new was of producing new products and who take the risk of starting a new business.
11) Limited Company: It is a registered company in which the liability of each shareholder is limited to the extent of his/ her share in it.
12) Market: Market is a way in which production produced is exchanged between producers and consumers of those products for certain prices.
13) Barter System: The exchange of goods and services with out the use of money is called barter system.
14) Wage: A wage is the amount of money paid to someone who participates in the activity of producing goods and service.
15) Interest: Interest is the payment made for the use of capital in the form of capital equipment such as machines, trucks, tractors etc. it is the remuneration paid to the capital.
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