I'm a college student that started studying Social Sciences for fun until I started reading in Economics, now I continue to further my understanding of Economics, so I can make a living out of it. My glossary is for people who wish to understand the jargon used by Economists and other in the industry of money. It will contain around 20 terms, and they are sourced and defined form Thomas Sowell's book, "Basic Economics".
Affordability
noun
The extent to which something is affordable, as measured by its cost relative to the amount that the purchaser is able to pay.
Example: The Affordability of consumer goods has risen
fr: Abordabilité
Allocation of Resources
phrase
Resource allocation is the process of assigning and managing resources in a way that supports an organization's strategic planning goals.
Example: It is necessary to optimize our allocation of resources if we want to be profitable.
fr: Allocation des ressources
Alternative Uses
phrase
It is defined in Economics as the varying uses something or someone could have in a given circumstance.
Example: The steel you used had alternative uses, but you wasted it on this meaningless project.
fr: Utilisations alternatives
Balance of Trade
phrase
The balance of trade is the difference between the value of a country's exports and imports for a given period.
Example: The US balance of trade deficit increased from $61.9 billion in November to $62.2 billion in December 2023, as imports increased more than exports.
fr: La balance commerciale
Bonds
Noun
Bonds are debt securities issued by governments and corporations to raise money.
Example: He bought some bonds because he doesn't like to risk his money in his investment strategy.
fr: Obligations
Capital gain
phrase
Capital gain is an economic concept defined as the profit earned on the sale of an asset which has increased in value over the holding period.
Example: It will be a gain in capital after I sell my shares in this corporation.
fr: Gain de capital
Central Planning
phrase
A centrally planned economy, also known as a command economy, is an economic system where a government body makes economic decisions regarding the production and distribution of goods.
Example: This country wants to try Central Planning even after a century of failure.
fr: Planification centrale
Collective Bargaining
phrase
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers.
Example: Some collective bargaining was used to get better working conditions.
fr: Négociation collective
Commodities Market
phrase
A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar.
Example: The market of commodities was heavily affected by this new war in Asia.
fr: Marché des matières premières
Consumer Price Index
phrase
A consumer price index is a price index, the price of a weighted average market basket of consumer goods and services purchased by households.
Example: Last night, I checked the consumer price index of varying sources, and noticed that the government is putting lower numbers than independent firms.
fr: Indice des prix à la consommation
Economies of scale
phrase
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time.
Example: Economies of scale have often limits, such as passing the optimum design point where costs per additional unit begin to increase.
fr: Économies d'échelle
Externality
noun
Impact on any party not involved (third party) in a given economic transaction or act.
Example: Pollution is an externality of fossil fuel.
fr: Externalités
Gross national income
phrase
Total domestic and foreign output claimed by residents of a country, consisting of gross domestic product, plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents.
Example: The U.S. used GNP until 1991 as its main measure of economic activity.
fr: Revenu national brut
Human capital
phrase
Human capital or human assets is a concept used by economists to designate personal attributes considered useful in the production process.
Example: In the 1990s, the concept of human capital was extended to include natural abilities, physical fitness and healthiness, which are crucial for an individual's success in acquiring knowledge and skills.
fr: Capital humain
Monopoly
noun
A monopoly, as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a specific person or enterprise is the only supplier of a particular thing.
Example: That cheese factory has a monopoly in the city.
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