Economic Vocabulary



the action of helping or doing work for someone.


that which is morally right; righteousness

Mixed economy

an economic system variously defined as containing a mixture of markets and economic planning, in which both the private sector and state direct the economy; or as a mixture of public ownership and private ownership; or as a mixture of free markets with economic interventionism.

Medium of exchange

something that buyers will exchange with a seller when they want to purchase goods or services from the seller.

Literacy rate

anyone who is at least 15 years of age and over who can read and write.

Standard of living

  1. the degree of wealth and material comfort available to a person or community.

Translate standard of living to

Gross domestic product

the total value of goods produced and services provided in a country during one year.

Factors of production

An economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit.

Capital goods

goods that are used in producing other goods, rather than being bought by consumers.

Human capital

the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.


the most important city or town of a country or region, usually its seat of government and administrative center.

Trade barrier

are measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services.


limited or fixed number or amount of people or things, in particular.


a tax or duty to be paid on a particular class of imports or exports


an official ban on trade or other commercial activity with a particular country

Command economy

An economy where supply and price are regulated by the government rather than market forces.

Market Economy

an economy in which decisions regarding investment, production, and distribution are based on supply and demand,[1] and prices of goods and services are determined in a free price system.

Traditional economy

in which traditions, customs, and beliefs shape the goods and the products the society creates. Countries that use this type of economic system are often rural and farm-based


is a system of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.[


An actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter.