Professor Bernard's picture

The Definitions of the Basic Notions

By Bernard
  • Choice; state of an economic agent before he consumes or produces.
  • Consumption: the final destination of all the goods in the economy.
  • Durable good; good which can be used for more than a year.
  • Economic good; good that has both use and exchange values.
  • Economic model: set of relations between many variables presented in a certain cohesiveness.
  • Economic system: the whole economy seen as a whole, with all the relationships between its parts.
  • Essential good: good whose use is fundamental, as food, cloth and housing.
  • Exchange balue; mesurement of a good for somebody else.
  • Gagget: good whose utility is frivolous.
  • Good: object that we can use.
  • Graph: visual representation of the relation between two or more variables
  • Luxury: to enjoy a lot of goods.
  • Need; what we want for surviving and better llving.
  • Non durable good; good that is used within a year
  • Opportunity: state of an economic agent that is considering everything that it could get, more or less, if it would be producing or consuming in a different way.
  • Option: result of a choice.
  • Product: result of the production process.
  • Production: the process of transforming scarce ressources to make them available
  • Productivity: ratio in volume between the results of some production and what made that production.
  • Profitability: ratio in value between the profit and any cost in the production process.
  • Public good: good which is used by everybbody, but which cost cannot be charged to one person.
  • Rate of return: ratio between the profit and the value of a production process.
  • Rate: ratio between two variables expressed as a percentage.
  • Ratio: relationship between two variables.
  • Renonciation: state of an economic agent that just made a choice, considering the option rejected.
  • Scarcity: state of a good that wee need, but that the supply is not enough.
  • Speculation: risky action of an economic agent.
  • Table: presentation of data in an ordained and organized way.
  • Use value: measurement of a good for its owner.
  • Value: measurement of a good in itself.
  • Wealth: state of a person who has a lot of goods of all kinds.