ECONOMIC VOCABULARY

1. Free trade-trade carried on without protective tariffs or quotas. 2. Profit-income received for business skills and risk-taking,

calculated by subtracting all of a firm’s explicit (clearly stated) and implicit (implied) costs from its total revenue.

3. Revenue-income or return from an investment. 4. Entrepreneur-one who draws upon his or her skills and initiative

to launch a new business venture with the aim of making a profit; often a risk-taker inclined to see opportunity when others do not.

5. Goods-movable personal property or merchandise. 6. Services-a system of providing people with a utility or action. 7. Sales tax-tax on the sale of a good or service. 8. Federal grants-grants (free money) given by the federal

government for some purpose; to give or transfer money by the govt. thru a legal procedure for a purpose.

9. Personal income tax-tax paid by individuals to the govt. for funding services such as national defense, human services, and the monitoring of trade.

10. Property tax-tax on land and structures built on it; payments go to the state or local govt. to pay for police, schools, and libraries.

11. Opportunity costs-the value of what you give up in order to get what you want; the second best alternative that must be given up when scarce resources are used for one purpose instead of another.

12. Wants-a wish or desire. 13. Needs-a necessity, not a luxury. 14. Income-money received in a given period as wages or rent. 15. Spending-to pay out money for goods, services, or activities.

16. Credit-time allowed for payment or an agreement to pay later. 17. Saving-reduction in expense or amassing sums of money. 18. Investing- putting money aside in order to receive a greater

benefit in the future. 19. Coca-Cola-Pemberton sold Venable interest and Asa Candler

bought and sold it to Woodruff. 20. Delta-Huff Daland Dusters was formed in Macon; 1928

Woolman & investors formed Delta, named for the MS Delta region; first flight from Dallas to Jackson, MS, in 1929.

21. Georgia Pacific-GA Hardwood Lumber was formed in Augusta in 1927; in 1956 it became GA Pacific making tissue paper, pulp, paper, packaging, Brawney, and Quilted Northern.

22. Home Depot-Bernie Marcus and Arthur Blank opened it in 1979; now they have over 2000 stores.