An assumption is something accepted as true without proof, the taking over another debt’s. The assumption of power; is the act of laying claim or taking possession. That businesses are 100% efficient, or that they are always profit maximizing Assumptions

A black market is a place where illegal trading happen, a place where you get things cheaper because they are pirated and you avoid paying services and taxes for it. It usually involves breaking the law. Examples of a black market service; prostitution and drug dealing. Teenagers usually go to a black market to buy drugs for cheap, knowing that they won’t get caught. Black Market

Conditions that remain the same. It is also the Latin word for ‘all else being equal’. When an economist analyze a model, for example for the price and demand of coffee bean in a country, they tend to think about that certain thing first and assume that that one condition stays the same even though its not. Ceteris Paribus

A desire or a request for a certain good or service. When a person wants and desires to own anything and is willing to pay for it at a given point of time. A person that has a high demand means they want more of it, but are willing to pay a lot of money. Demand

The study of money in a financial system. Is it also the branch of knowledge of the distribution, production, consumption and the exchange of wealth, goods and services. In all of the countries there will always be economical crisis such as policies provided and loans. In every single nation, there is always economics. Economics is a very important financial system that exists since the market and trading was introduced. Economics

It is the government spending policy that mainly involves the changing in levels of taxation, interest rates and government spending in order to control the economy. The purpose of Fiscal Policy is to reduce the rate inflation and stimulate the economic growth. Many people in Web-Land are complaining about how the Fiscal Policy are affecting their spending on taxes, and how it increases every time the government decided to buy something that they don’t need in Web- Land. Fiscal Policy

Goods are mainly products that can be exchanged in markets, or things that are produced in order to be sold. A good is anything that is deemed desirable by the agents in the economy, e.g.; soda, pizza, etc. Every month Julia would buy herself goods from the super market or the mall. Goods

If you have a very high of inflation (higher than 1000%) it tends to mean that the money loses its value so fast that no body would want to use it as a medium of exchange. The honey bees were producing so much honey that there was too much for the bears to eat. All bears now had access to the honey and it could no longer be used as a method of exchange. Since the honey was too easy to get, the bears started to collect blueberries as they were much more valuable than the honey. Hyper Inflation

Infrastructure In an economy, infrastructure is one of the main things that are and has to be included. Infrastructure is the necessary needs, facilities and services of an economy. Engineers like John, designed the infrastructure of the train tracks for the people in Web Land. This is also called a service as he is building for the people who would soon use it.

It is when a group of currencies join together and maintain a fixed internal relationship, and then moves on to another currency. Joint Float

A government characterized by rampant greed and corruption. Kleptocracy

The labor market is the supply of the available workers in relation to available work. Labor Market Often business men like Ben whose job is to seek for people who are willing to work for him and are qualified for it, he would go to the labor market.

There are many ways to explain market. Ex, a) It is the place for exchanging goods and services b) Exchange in a larger sense of a country’s economy- exchange on a national level Some types of markets are; a) Goods market in which services and finished goods are exchanged b) Factor markets in which market factors of production In almost all the cities you go to, there will always be markets that sells goods and products for customers. In a larger sense of a market, only big companies like Microsoft could compete. Market

It is the negative or the harmful side effects of an economic activity that affects the people or the environment, and are/were not responsible for the activity. The people in Web-Land were not happy at the state of their surroundings because the government decided to build a major industrial buildings right next to their homes. Negative Externalities

Resources that would be difficult to exclude anyone from benefiting. When there is open resources businesses, companies or individuals would be more interested to invest in that particular country or area. Open Access Resources

It is the measure of the responsiveness of quantity supplied to changes in price. Price Elasticity of Supply

Restrictions put on the quantities of a good that can be imported. The quotas of shipping goods to another country has been increasingly expensive due to the amount of it you have. Quotas

It is the period of time given of an economic decline when trade and industrial activity are reduced. Recession

The insufficient for demand, lack of something; when you have a very few of something. When everything is scarce to extent that they are not sufficient to allow all goals to be accomplished at once. Unlimited want but there is a limited supply. The scarcity of water is still a major problem in poor countries like Swaziland and mainly countries in Africa. Scarcity

Taste is based on what different people like, want or prefer better. “You have a good taste in clothing, Melissa”. This would be an example of a fashionable person, as it states that Melissa has a good taste. Tastes

The usefulness of something, the state of it being useful and profitable in terms of trade and beneficial. The pleasure or satisfaction from goods, services and events. If it is useful to somebody it means it has utility. For example, education in KAUST they provide is free and every student have access to it. Utility

The cost of a product or good that varies with the level of something that is produced. The cost associated with using variable inputs, which rises with the quantity of the output. Variable costs

The World Bank is an international institution that offers financially and gives loans to developing countries all around the world. It is the most commonly used loan-banking around the world, and is very widely known. World Bank

The situation where more labor time is being used in a production process than is actually necessary. X efficiency

To produce or provide agriculture or industrial products, to give in return; produce as a result, profit, etc. Yielding is one of the main jobs for people in Web-Land as their natural resources are rice and grape, which they produce in order to earn money. Yield

The amount (zero) that is left over when revenues just meet the opportunity costs of supplying all resources, including an entrepreneur's capital and time. This is when one player is always profiting but the other player always loses, and didn’t benefit from the game. Zero Economic Profit