Non-financial assets or physical products, such as commercial and residential properties, that have value and therefore contribute to wealth.
Non-physical assets, such as bank deposits, shares, bonds and other financial claims that have value.
Financial assets that are ‘near money’, such as bank deposits, which can be converted into cash easily and quickly.
Also known as turnover, total revenue is the total amount of money received by a firm from the sale of its goods or services in a given period.
The revenue per unit of output sold, found by dividing the total revenue from the sale of a given output by that volume of output.
Money used to pay for day-to-day running costs in a business and invested in stocks of finished and unfinished products.
Money raised from the sale of shares by a company that it will never need to repay.
Extractive industries or those producing natural resources.
All manufacturing and construction industries.
Service industries form this sector of an economy.
Inward migration, the introduction of people from overseas into the population of a country.
The act of leaving your country to live overseas.
The difference between the number of immigrants and emigrants to and from a country per period of time.
A business organization owned by its customers and run for their mutual benefit.
A business organization owned and managed by its worker-owners.
Rising unit costs resulting from shortages of labour or increasing disputes with trade unions as a firm grows beyond its optimum size.
Rising unit costs resulting from an increase in management costs as a firm’s size increases – for example, communication problems caused by too many layers of management or too many premises in too many locations to manage effectively.
The ease with which workers can move between different occupations or jobs.
The average output or revenue per worker per period of time.
The inability of workers to move easily between from one occupation to another because they lack the skills required. It is often a feature of structural unemployment.
Increased costs resulting from ‘organizational slack’ or a lack of incentives in a firm that is protected from competition because it enjoys significant market power.
Turning unprocessed natural resources and other unfinished products into other goods.
Using the most modern production processes and working practices to continually reduce costs and waste, improve quality and increase output.
The production, usually in a continuous flow, of a large amount of standardized products.
The economically active population or labour force in an economy.
That part of a population that is economically inactive (not in paid employment) and therefore relies on others to produce the goods and services it consumes.
An economic condition in which there are too many people and too few resources.
A graph that shows the distribution of males and females in various age groups in a population.
A measure that contrasts the number of people in the dependent population of a country with the working population in the same country.
The skills and willingness to take the risks required to organize productive activity in a firm.
A small or medium-sized enterprise.
The combining of two or more business enterprises into a single enterprise.
The transfer of control of one company to another through the purchase of its shares.
A legal agreement between two or more people, usually no more than 20, to jointly own, finance and run a business, and to share any profits.
A person who invests money into a partnership, but is not involved in the day-to-day running of the business.
An organization, such as a bank, that brings together customers who want to save money and others who wish to borrow it.
The main bank in an economy, responsible for managing the stability of its national currency and money supply, and for regulating its banking system.
A type of bank with individual and business customers that has retail branches in many towns and cities.
A business organization created to perform a public sector function or to operate under government control, such as a municipal water company, public hospital or central bank.