Section 1 Glossary

Section 1 Glossary

capital: the money, equipment, tools, and other resources required to produce the goods and services

collective bargaining: the process of negotiating the contract between an employer and its employees as a group

command or planned economy: an economic system in which resources are publicly owned (that is, owned and controlled by the government and paid for by taxes) and the government makes decisions on how to use the resources

competition: the challenge of a producer to sell a product to consumers when other producers want to sell the same product also

consumer: someone who uses products or services

demand: the desire for goods or services by consumers

equilibrium price: the price at which the seller is willing to sell and the buyer is willing to pay

labour: the work completed by individuals

In secondary industry, labour consists of converting raw materials into finished products. Labour is also found in tertiary industry; labour includes services provided to society.

land: the natural resources or raw material used to produce the goods and services in primary industries

market economy: an economic system in which individuals are free to make their own decisions with little or no intervention from the government and where resources are the private property of persons or companies

mixed economy: an economic system in which both the public and the private sectors have significant roles in the economy and where some resources are owned by the private sector and some by the public sector

monopoly: a situation in which there is one producer or supplier of a particular good or service

primary industry: when raw materials are grown or extracted from the land and/or sea

public good: the view of what is best for the group, community, or nation

quaternary industry: an industry that focuses on research, development, and/or planning

scarcity: limited resources and unlimited wants; in economics, the idea that land, labour, and capital limit the supply of what people want and need

secondary industry: when raw materials are processed and manufactured into finished goods

shift left: on an economic continuum, an increase in government involvement in the economy

shift right: on an economic continuum, a decrease in government involvement in the economy

supply: the availability of goods or services

tertiary industry: a service industry in which goods or services are distributed or sold to the consumer

union: a group of employees that have united as a formal entity to work through collective bargaining towards the improvement of workers' wages and working conditions