Comparative advantage: an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners.
Demand: the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.
Economics: the social science that studies the production, distribution, and consumption of goods and services.
Equilibrium: a state in a market-based economy in which economic forces – such as supply and demand – are balanced.
Free market: an economic system in which prices are determined by unrestricted competition between privately owned businesses.
GDP: gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.
Inflation: a general increase in prices and fall in the purchasing value of money.
Interest rate: the amount a lender charges a borrower and is a percentage of the principal—the amount loaned.
Invisible hand: a metaphor for the unseen forces that move the free market economy.
Macro Economics: the branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.
Micro Economics: the part of economics concerned with single factors and the effects of individual decisions.
Needs: physiological, personal, or socio-economic requirements necessary for you to function and live.
Opportunity cost: the value of what you lose when choosing between two or more options.
Planned economy: an economy in which production, investment, prices, and incomes are determined centrally by the government.
Recession: a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending.
Scarcity: when the demand for a resource is greater than the supply of that resource, as resources are limited.
Shortage: a situation in which the demand for a product or service exceeds its supply in a market. It is the opposite of an excess supply.
Specialization: a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency.
Supply: the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or to an individual.
Surplus: when the amount of a good or assets exceeds the quantity actively used
Trade: the transfer of goods from one person or entity to another, often in exchange for money.
Unemployment rate: the percentage of people in the labour force who are unemployed.
Wants: something that people desire to have, that they may, or may not, be able to obtain.