Glossary (Version 8.4)

A quantitative (output and value) and qualitative (wellbeing) improvement in the standard of living.

An increase in the quantity of goods and services produced in an economy over a period of time; an increasing ability of society to satisfy the needs and wants of its people.

Applying the principles of economics to understand possible causes and effects of economic events and changes; that is, using economic and business ideas to explain and analyse economic and business events and issues.

Economic activity that supports economic needs of the present without compromising the ability of future generations to meet their own needs.

A system that coordinates the production and distribution of goods and services.

A social science (study of human behaviour) that studies decisions made by individuals, households, businesses, governments and other groups about how scarce resources are allocated in attempting to satisfy needs and unlimited wants.

All activities undertaken for the purpose of production, distribution and consumption of goods and services in a region or country.

Producing goods and services using the minimum amount of resources; obtaining the greatest amount of goods and services from limited resources; avoiding wastage of resources.

A business unit, company or project that is profit-oriented, non-profit, privately owned or government-controlled and that combines scarce resources for the production and supply of goods and services, and especially may require boldness or effort. Alternatively, the term may refer to the undertaking of a project or business.

A person who sets out to build a successful business in a new field. An entrepreneur’s methods are sometimes regarded as ‘ground-breaking’ or innovative.

A perceived fairness of the way scarce resources are used and the way benefits of production are distributed.

Uncompensated cost or benefit associated with a production or consumption of goods and services that affects the wellbeing of third parties or society more generally.