1. Absolute advantage – The ability to produce something with fewer resources than other producers would use to produce the same thing
2. Balance of trade – The part of a nation’s balance of payments that deals with merchandise (or visible) imports or exports.
3. Bank, commercial – A financial institution accepts checking deposits, holds savings, sells traveler’s checks and performs other financial services.
4. Barter – The direct trading of goods and services without the use of money.
5. Bond – A certificate reflecting a firm’s promise to pay the holder a periodic interest payment until the date of maturity and a fixed sum of money on the designated maturity date.
6.Business (firm) – Private profit-seeking organizations that use resources to produce goods and services.
7. Capital – All buildings, equipment and human skills used to produce goods and services.
8. Circular flow of goods and services (or Circular flow of economic activity) – A model of an economy showing the interactions between households and business firms as they exchange goods and services and resources in markets.
9. Competition – The effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms.
10. Consumers – People whose wants are satisfied by consuming a good or a service.