Work, Earnings and Economics: Using 'Lyddie' by Katherine Paterson
Glossary terms from:
A sum of money paid regularly to a person, often by a parent to a child; sometimes paid in compensation for services rendered.
A financial institution that provides various products and services to its customers, including checking and savings accounts, loans and currency exchange.
An arrangement by which a bank holds funds on behalf of a depositor. Also, the balance of funds held under such an arrangement, credited to and subject to withdrawal by the depositor.
A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.
Resources and goods made and used to produce other goods and services. Examples include buildings, machinery, tools and equipment. In the context of credit transactions, capital is one of the Three Cs of Credit. It is an indicator of how creditworthy a prospective borrower is likely to be as determined by the borrower's current financial assets and net worth.
In the context of credit transactions, character is one of the Three Cs of Credit. It is an indicator of how creditworthy a prospective borrower is likely to be, as determined by the borrower's handling of past debts and his or her stability in jobs and residences.
Decision made or course of action taken when faced with a set of alternatives.
To buy and use a good or service.
An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.
A conclusion reached after considering alternatives and their results.
Money put into a financial account. Also, to place money in a financial account.
The study of how people, firms and societies choose to allocate scarce resources with alternative uses.
Payments for goods and services.
Something a person or organization plans to achieve in the future; an aim or desired result.
Any reward or benefit, such as money, advantage or good feeling, that motivates people to do something.
Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.
Money paid regularly, at a particular rate, for the use of borrowed money.
A piece of work usually done on order at an agreed-upon rate. Also a paid position of regular employment.
The quantity and quality of human effort available to produce goods and services.
"Gifts of nature" that can be used to produce goods and services; for example, oceans, air, mineral deposits, virgin forests and actual fields of land. When investments are made to improve fields of land or other natural resources, those resources become, in part, capital resources. Also known as natural resources.
An economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources and to coordinate the diverse plans of consumers and producers, all of them pursuing their own self-interest.
Places, institutions or technological arrangements where or by means of which goods or services are exchanged. Also, the set of all sale and purchase transactions that affect the price of some good or service.
Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.
The second-best alternative (or the value of that alternative) that must be given up when scarce resources are used for one purpose instead of another.
The amount of output (goods and services) produced per unit of input (productive resources) used.
Income received for entrepreneurial skills and risk taking, calculated by subtracting all of a firm's explicit and implicit costs from its total revenues.
Economic regulation is the prescription of price and output for a specific industry, often a natural monopoly. Social regulation is the prescription of health, safety, performance, environmental, output and job standards across several industries.
The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.
Role of Government
Government activity in establishing a framework or rules of the game in economic life. In the United States, this activity involves preserving and fostering competition, regulating natural monopolies, providing information and services to enable the market to work better, regulating externalities, providing certain public goods, offering some economic security and income redistribution to individuals, assuring a sound monetary system and promoting overall economic stability and growth.
To keep money for future use; to divert money from current spending to a savings account or another form of investment.
Persons who desire to conserve their monetary funds to the best of their ability.
Disposable income (income after taxes) minus consumption spending.
Money set aside for a future use that is held in easily-accessed accounts, such as savings accounts and certificates of deposit (CDs).
The condition that exists because human wants exceed the capacity of available resources to satisfy those wants; also a situation in which a resource has more than one valuable use. The problem of scarcity faces all individuals and organizations, including firms and government agencies.
Use money now to buy goods and services.
Payments for labor services that are directly tied to time worked, or to the number of units of output produced.
Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.
Effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.
People employed to do work, producing goods and services.