Search Council for Economic Education's full glossary for terms and definitions

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The increased output resulting from trade; with trade, each individual, region or nation is able to concentrate on producing goods and services that it produces efficiently, while trading to obtain goods and services that it does not produce.

Although there is no one precise definition, the term usually refers to the increased flow of trade, people, investment, technology, culture and ideas among countries.

Something a person or organization plans to achieve in the future; an aim or desired result.

Tangible objects that satisfy economic wants.

Goods and services provided by government and paid for by taxing and borrowing. Federal government expenditures include national defense and a system of justice. State and local government expenditures include police, roads and public education.

Policy and budget choices by government officials that result in inefficiency.

Funds raised through taxing and borrowing to pay for government expenditures.

Spending by all levels of government on goods and services; includes categories like military, schools and roads.

A period of time allowed for payment of money owed; after the grace period has elapsed, interest may be charged.

The market value of all final goods and services produced in a country in a calendar year.

A total amount of money earned (from salaries, wages, etc.) before taxes and other deductions are withheld. Also known as gross pay.

A total amount of money earned (from salaries, wages, etc.) before taxes and other deductions are withheld. Also known as gross income.

A mutual fund whose major objective is long-term capital growth. Growth funds offer the potential for substantial gains over time, but shares fluctuate in value during ups and downs in financial markets.