Economic Concepts
the total value of all goods and services produced within a country's borders, serving as a key measure of its economic performance.
GDP
an economic system characterized by private ownership of the means of production, where individuals and businesses operate for profit in competitive markets, with minimal government intervention. In a capitalist system, the prices of goods and services are primarily determined by supply and demand in a free market, and the pursuit of individual self-interest is a driving force in economic activities.
Capitalism
political ideology and system characterized by authoritarian leadership, extreme nationalism, suppression of political opposition, and strong government control over the economy and society, often marked by dictatorial power and aggressive militarism.
Fascism
giving in finance involves voluntarily donating money or assets to non-profit organizations, serving both philanthropic purposes and, in some cases, offering potential tax benefits.
Charitable Giving
involves allocating money or resources to financial assets, businesses, or projects with the expectation of generating a return or profit over time, aiming to grow wealth, beat inflation, and achieve specific financial goals.
Investing
economic concepts that describe the relationship between the availability of a good or service and the desire of consumers to buy it, influencing the price and quantity exchanged in a market;
Supply and demand
an economic philosophy or approach that advocates minimal government intervention in economic affairs. In a laissez-faire system, the belief is that economies function best when markets are allowed to operate freely, without excessive regulation or interference. The term itself is French and translates to "let it be" or "leave it alone," reflecting the idea that the government should leave the economy to regulate itself through the natural forces of supply and demand.
Laissez-faire
a political and economic ideology advocating for a classless and stateless society where the means of production are collectively owned, and wealth is distributed based on need, with the ultimate goal of achieving a state of common ownership and equality among individuals.
Communism
important as it allows consumers to make informed decisions by evaluating the prices, features, and quality of products or services from different sellers, ensuring they get the best value for their money and promoting competition in the marketplace.
Comparative Shopping
the act of engaging in risky financial transactions, often involving buying and selling assets with the hope of profiting from short-term price fluctuations, rather than from the underlying value or income generated by the asset.
Speculation
the fundamental economic problem that arises from limited resources and unlimited wants, necessitating individuals, businesses, and societies to make choices about how to allocate these resources efficiently to fulfill their needs and desires.
Scarcity
economy combines free-market principles with government interventions to ensure economic efficiency, while also addressing social inequalities and promoting social welfare.
Socail Market
decisions about production, investment, and distribution are predominantly guided by the forces of supply and demand in competitive markets, with limited government intervention.
Market economic system
Who is responsible for your financial decision.
I am
involves risking money or valuables on an uncertain outcome, often in games of chance or events with unpredictable results, with the primary intention of winning additional money or material goods.
Gambling
the value of the next best alternative forgone when a decision is made to allocate resources (such as time, money, or effort) to a particular option; in simpler terms, it's what you give up in terms of other possible choices when you make a decision.
Opportunity Cost
a contemporary form of capitalism that may incorporate new features or adaptations in response to changing economic and social conditions.
Neo-Capitalism
also known as a centrally planned or socialist economy, the government or a central authority makes key economic decisions, including what to produce, how much to produce, and how resources are allocated.
Command
a systematic process for evaluating the pros and cons of a decision, project, or policy by comparing the total costs involved with the total expected benefits, providing a framework for assessing the economic efficiency and rationality of a choice.
Cost benefit analysis
refers to the desire for immediate rewards or gratification, often at the expense of long-term financial well-being, and can lead individuals to make impulsive decisions, such as overspending, taking on excessive debt, or engaging in high-risk investments, without considering the potential consequences.
Instant Satisfaction
the concept in decision-making where gaining one benefit or advantage necessitates giving up something else. It involves balancing different factors or objectives, and making choices that involve compromises because resources are limited.
Trade-off
an economic and political system where the means of production, such as factories and businesses, are commonly owned or controlled by the state or the community as a whole, aiming for a more equal distribution of wealth and resources.
Socialism
combines elements of both market and command economies, featuring private ownership and market forces alongside some degree of government intervention and regulation to address social concerns and promote economic stability.
Mixed economic system
the act of setting aside a portion of income or resources for future use, creating a financial reserve that can be utilized for emergencies, investments, or long-term goals, thereby promoting financial stability and security.
Saving
refers to the practice of forgoing immediate rewards or pleasures in favor of achieving long-term financial goals, often involving disciplined saving, investing, and making prudent financial decisions t
Delayed Gratification