Economic Glossary
Term Definition
Economy An economy is the economic system of a country. It is the way
that trade, industry and wealth of a country is measured. It is
all about how we make decisions (choices) in world where
recourses are limited. E.g., how things are made, bought, sold
and used.
Industry An economic activity concerned with the processing of raw
materials and manufacture of goods in factories. E.g.,
productions, selling goods ,supplying etc.
Wealth Is the value of all the resources that are possessed by an
individual or society whether it is a valuable possession,
resources or money. E.g. the wealth of England is measure the
bank of England (how much money in the bank)
Allocation 1. The action or process of allocating or distributing
something.
2. to give something to someone as their share of a total
amount, to use in a particular way:
The government is allocating £10 million for health
education.
Financial A financial institution (FI) is a company engaged in the
institution business of dealing with financial and monetary transactions
such as deposits, loans, investments, and currency exchange.
Consumption The using up of a resource:
industrialised countries should reduce their energy
consumption
Business cycle The business cycle describes the rise and fall in production
output of goods and services in an economy. Business cycles
are generally measured using the rise and fall in real gross
domestic product (GDP) or GDP adjusted for inflation.
Aggregate Formed or calculated by the combination of many separate
units or items; total:
the aggregate amount of grants made
Microeconomic Microeconomics is the science of how people make decisions
at the small scale. It is different from macroeconomics which
looks at how the economy works as a whole ("on aggregate"
Macroeconomi Macroeconomics is a branch of the economics that studies how
c the aggregate economy behaves
Scarce (especially of food, money, or some other resource) insufficient
for the demand:
as raw materials became scarce, synthetics were
developed
Opportunity The loss of potential gain from other alternatives when one
Cost alternative is chosen.
Utility The state of being useful, profitable, or beneficial:
he had a poor opinion of the utility of book learning
Margin The edge or border of something.
fluctuations An irregular rising and falling in number or amount; a variation.
Trough In economics, a trough is a low turning point or a local
minimum of a business cycle.
