Vocabulary Development-9

Objectives
Student will be able to:
  • define and use words that relate to economics.

Introduction
This lesson focuses on words relating to economics. We all live in a country with some form of economic system or organization. Increasing your understanding of these vocabulary words will allow you to be more conversant both verbally and in writing to express your thoughts and opinions on the subject.
 
The following ten words can help citizens better understand the foundation and functions of different economic systems.


 


Examples
Let's look at some examples of the defined economics vocabulary. We will need to use the context of the sentence to provide clues to the word's meaning. Understanding word origin will also increase your understanding of these words.

What does the underlined word mean in each example?

The family's annual budget balances all of the anticipated income and expenses.


Knowing the origin of the word budget will help you to visualize and remember the definition. The word originated from English and French meaning "bag." Thinking of a budget as the entire bag of money that you can spend in one year may help you remember the definition.
 


The demand for goods is related to increases in workers' incomes.


The law of supply and demand is one of the most basic of all economic concepts. Demand is the amount of goods or services people want. The supply is how much of those goods or services businesses can provide. The following sentence can help you remember the definition of demand.
 
The demand for vehicles with high gas consumption has decreased as gas prices have increased.  
 



Many innovative products have been developed by an entrepreneur who took the risk to develop a business to produce and distribute the products.


The word entrepreneur originated in France in the late 1800s. It was used to mean someone who undertakes some task. Today there are many examples of entrepreneurs who had an idea for a new invention, concept, or product and took the risk to successfully bring it to market. Think of individuals in the computer and telecommunications industries and you probably can name at least one successful entrepreneur.
 



Try Together
Match each vocabulary word on the left to its meaning on the right.
Words
Meanings
1.
capitalism
a.
a period with a substantial increase in prices
2.
inflation
b.
an economic system with private or corporate ownership of production
3.
deficit
c.
amount of money that falls short of the required amount
Answer: 1-b, 2-a, 3-c,
 

Circle the letter of the word that best completes the sentence.

4.
During the   , people found it difficult to find jobs.
a. deficit
b. deflation
c. depression
d. demand
 
c.   depression
 
 

5.
In the box below, write a sentence using the word recession.
 

Student responses may vary. Acceptable answers include:

  • Consumers began to purchase less during the recession.
  • The value of our home has decreased during the recession.
 

Please evaluate the student's answers:

Excellent

Good

Okay
 

Exhibit Preview Close
Word Definition
budget:

(n.) an estimate of expected income and expenses for a period in the future

(v.) to plan an allotment of funds
capitalism: (n.)an economic system in which investment in and ownership of production and distribution are chiefly by private individuals or corporations
communism: (n.) an economic system in which all activity is controlled by a totalitarian state with a single political party
deficit: (n.) the amount by which a sum of money falls short of the required amount
demand: (n.) the desire to purchase; the amount of a commodity that consumers are prepared to buy
depression: (n.) a period during which business, employment, and stock-market values decline severely or remain at a very low activity level
entrepreneur: (n.) a person with initiative who develops a business or enterprise that has inherent and significant risks
inflation: (n.) a persistent, substantial rise in the general level of prices
recession: (n.) a period of economic contraction
socialism: (n.) an economic system that advocates the ownership and control of production and distribution of profit, land, etc., by the community