GLOSSARY. Asking price – the price that someone wants to sell something for.

Asking price – the price that someone wants to sell something for.

Bid price – an offer to pay a particular price for something.

Black economy – business activity that takes place unofficially, especially in order to avoid tax.

Business cycle – fluctuation in economic activity characterized by periods of rising and falling fiscal health. During a business cycle, an economy grows, reaches a peak, and then begins a downturn followed by a period of negative growth (a recession) that ends in a trough before the next upturn.

Capital – 1 the stock of wealth existing at anyone time. 2 money or property, especially when it is used to start a business or to produce more wealth.

Capital goods – goods such as machines or buildings that are made for the purpose of producing other goods.

Competition – the eternal contest between business firms to see which can perform the best either in terms of market share, profit, or some other recognized yardstick.

Consumer goods – goods such as food, clothes, and equipment that people buy, especially to use in the home.

Consumption – 1 the using up of a resource. 2 the selection, adoption, use, disposal and recycling of goods and services, as opposed to their design, production and marketing.

Demand – people’s need or desire to buy or use particular goods and services.

Depression – a period of economic crisis in commerce, finance, and industry, characterized by falling prices, restriction of credit, low output and investment, numerous bankruptcies, and a high level of unemployment.

Economic sector – a part of an area of economic activity.

Economics – the study of the way in which money and goods are produced and used.

Economies of scale – the financial advantages of producing something in very large quantities.

Economy (economic system) – the system by which a country's money and goods are produced and used, or a country considered in this way.

Entrepreneurship – an activity of starting a company, arranging business deals, and taking risks in order to make a profit.

Factors of production – the sum total of the economic resources which we have in order to provide for our economic wants.

Labour – 1 the exercise of human mental and physical effort in the production of goods and services. 2 all the people who work for a company or in a country.

Market economy – a system of producing wealth based on the free operation of business and trade without government controls.

Mixed economy – an economic system in which some industries are owned by the government and some are owned by private companies.

Output – the amount of goods or work produced by a person, machine, factory etc.

Participatory economics – an economic system proposed as an alternative to contemporary market economies and also an alternative to centrally planned socialism or coordinatorism. It implies participatory planning, transparency in all discussions and decision-making.

Planned economy – an economic system in which decisions about the production, allocation and consumption of goods and services is planned ahead of time, in either a centralized or decentralized fashion.

Recession – a period of a business cycle during which there is less trade, business activity, and wealth than usual.

Recovery – a period of a business cycle during which the economy is becoming stronger or more successful again after a difficult period.

Scarcity – a situation in which there is not enough of something.

Traditional economy – an economic system in which decisions are all made on the basis of customs, beliefs, religion, habit, etc.