Access, Analyze, Act:From Economic Theory to Financial Reality
Glossary
Our glossary of economic terms includes key concepts and multimedia examples of terms that are important for building a foundation of economic literacy. These terms can be found throughout the lesson plans and case studies, but are alphabetically listed here for quick reference. The glossary can also be embedded in your own website or blog via the widget to the lower right.
Asset:
something of monetary value that is owned by an individual or an organizationBalance of Trade:
the comparison between the value of imported goods and the value of exported goodsBenefit:
an employer-provided payment that goes toward health insurance, retirement accounts, etc. that is often considered part of an employee's compensation package (what a job pays)View All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
Bureau of Labor Statistics:
a unit of the U.S. Department of Labor that is chiefly responsible for gathering and reporting economic data related to the labor marketBusiness Plan:
a plan created for a business that includes its name, its goals and objectives, the product(s)/services it plans to sell and/or distribute, the work skills needed to provide those products/services, and the marketing strategies used to promote themView All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
Capital:
resources, goods, or money that can be used to produce other goods and servicesCollateral:
something of value (such as a house) that a borrower uses to help secure a loan -- if the borrower can't pay back the loan, the lender can take over ownership of the item(s) used as collateralCommodities:
goods (often agricultural products and natural resources) for which little or no processing is involved, so there isn't a great deal of difference in the quality of the goodsView All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
Consumer Confidence:
the degree of optimism/pessimism among consumers about the state of the economy overall, particularly as it relates to their own economic well-beingConsumer Price Index:
a price index that measures the cost of a fixed basket of consumer goods and services and compares the cost of this basket in one time period with its cost in an earlier base period; changes in the CPI are used to measure inflationView All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
Cost Benefit Analysis:
a process for making a decision in which you weigh the expected costs (monetary, time, effort) against the expected benefits (monetary and others) to try to determine if an action is "worth" takingCredit:
the opportunity to borrow money or receive goods or services on the promise to pay later, often with interest attachedDebt:
what is owed to someone else, whether it's an individual, a company, or a government entity that owes the moneyDepreciation:
the reduction in the value of assets or capital goods over time, due primarily to the wear and tear related to their useDeterminants of Supply/Demand:
factors other than price that affect the supply (or demand) of a product or service; factors might be change in the number of producers or change in consumer preferences or consumer spending powerEmployment Rate:
the percentage of the working-age population who are currently employed; for example in 2005 (the latest year of available data), the U.S. employment rate was 71.5% according to the Organization of Economic Cooperation and DevelopmentEquity:
the value of ownership in a home, a car, a company (including in the form of stock ownership), or other assetView All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
Exchange Rates:
the value of one nation's currency compared with other nations' currenciesFiscal Policy:
government spending and taxing policies designed to create desired effects on the economyGross Domestic Product (GDP):
a standard measure for a country's overall economic performance; GDP calculates the total market value of all goods and services produced within a country during a specified periodView All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
Health Insurance:
financial coverage for medical expenses in which you pay a regular amount (often monthly) in the form of a premium to keep that coverageIncentive:
a reward or benefit that motivates people to do somethingInvestment:
for individuals, it is the purchase of assets (e.g., stocks, bonds, property) with the expectation that they will increase in value over time; for companies it is the purchase of goods (e.g., equipment, software) that are expected to contribute to increased profits over timeLabor Market:
the marketplace of available jobs and workers to fill themView All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
Labor Pool:
the group of trained people from which workers can be hired (sometimes referring only to those with specialized training for one specific job)Lagging Indicators:
economic indicators that look at past performance, such as profits (measured after all revenue and expenses have been accounted for)Line of Credit:
any credit source provided to a business or individual by a bank or other financial institution; the line of credit can readily be tapped into if an individual or business needs funds, or not touched at all and saved for emergencies (interest is only paid on the money that is actually taken out)View All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
Mortgage:
a loan for the purchase of a home or other real estateNet Worth:
the current value of a person's assets minus liabilities (such as the amount of money still owed for an automobile or a home)Opportunity Cost:
an alternative for spending your time or money -- what you miss out on by choosing to spend your time and/or your money in certain waysView All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
Rate of Return:
earnings from an investment, expressed as a percentage of the investment (instead of the amount earned), so earning $100 on a $1,000 investment has a 10% rate of returnSafety Net:
a set of programs that provide assistance should a person need help with basic daily needs and expenses, such as when a person is unemployedSalary:
compensation for a job that is paid to a person on a regular basisScarcity:
the condition that results from demand being greater than supplyStock Market:
the term used to refer to all of the public markets (stock exchanges) throughout the world where company stocks are bought and soldSubsidy:
financial assistance (usually provided by the government) to targeted industries, companies, and individualsView All Videos
The video cannot load. Please be sure that JavaScript is enabled and reload the page to try again.
