Money
When an item is accounted for more than once.
Double Counting
An intangible provision that has utility, is scarce, and is transferable.
Economic Service
The finished products and does not include the intermediate products that make up the finished products.
Final Goods and Services
A tangible item that has utility, is scarce, and is transferable.
Economic Good
Items that don’t wear out quickly; they last a long time (i.e three years as a rule of thumb), like cars, tvs, smartphones, and soccer balls.
Durable Goods
A country’s total exports minus its total imports.
Net Exports
Products used as inputs to complete a final good or service.
Intermediate Products
The increase in the general level of prices in an economy.
Inflation
All government spending including government employee salaries, road construction/repair, public schools, and military expenditures.
Government Spending and Investment
The total market value of all final goods and services an economy produces in a period of time (usually quarterly or yearly), within a country’s borders.
Gross Domestic Product (GDP)
The amount of goods and services produced (output) per unit of input (labor, capital, and other resources).
Productivity
The total of a country’s private investment on capital equipment, inventories, and housing.
Private Domestic Investment
Total consumer spending on goods and services and includes durable goods and non-durable goods.
Private Consumer Spending
GDP divided by a country’s population.
Per Capita GDP
Items that are quickly consumed; they only last a short period of time, like fast food, coffee, shampoo, and deodorant.
Nondurable Goods
Also called the black market, where certain parts of a country’s economic activity go unrecorded and untaxed, like with ticket scalping or illegal drug trafficking.
Underground Economy
A payment of money to a person where no work or service is performed in exchange for the payment.
Transfer Payments
When a country’s exports exceed its imports.
Trade Surplus
When a country’s imports exceed its exports.
Trade Deficit
Occurs when a country experiences temporary economic decline, usually measured as two consecutive quarters of decline in GDP.
Recession
The intentional act of not spending income, and setting it aside to use in the future.
Saving
Purchasing an asset with the hope that it will produce income or a profit.
Investing
Targets to achieve in order to meet your future financial needs and wants.
Financial Goals
The money required to meet your daily and future needs.
Financial Needs
Payments made by state governments to employees who lost their jobs through no fault of their own.
Unemployment Compensation