THE ECONOMICS A-Z (l-m)

Read the follwing definitions of vocabulary associated with Economics. Then try to find the Spanish word:

Labour:

One of the factors of production, it is the aggregate of all human physical and mental effort used in creation of goods and services. The size of a nation'slabor force is determined by the size of its adult population, and the extent to which the adults are either working or are prepared to offer their labor for wages. More recently, knowledge (know how) has come to be regarded as distinct from labor.

Laissez-faire:

French for, allowto pass or let go. One of the guiding principles of capitalism, this doctrineclaims that an economic system should be free from government intervention or moderation, and be driven only by the market forces. Centered on the belief (termed invisible hand by the 18th century Scottish economist Adam Smith) that human beings are naturally motivated by self-interest and, when they are not interfered-with in their economicactivities, a balanced system of production and exchange based on mutualbenefit emerges.

Land:

Primaryinput and factor of production which is not consumed but without which no production is possible. It is the resource that has no cost of production and, although its usage can be switched from a less to more profitable one, its supply cannot be increased. The term 'land' includes all physical elements in the wealth of a nation bestowed by nature; such as climate, environment, fields, forests, minerals, mountains, lakes, streams, seas, and animals.

Lease:

Written or implied contract by which an owner (the lessor) of a specific asset (such as a parcel of land, building, equipment, or machinery) grants a secondparty (the lessee) the right to its exclusivepossession and use for a specific period and under specified conditions, in return for specified periodicrental or lease payments.

Liberalism:

Concept that a government should not try to controlprices, rents, and/or wages but instead let opencompetition and forces of demand and supplycreate an equilibrium between them that benefits the vast majority of citizens. It differs from the doctrine of laissez faire in its acceptance of the government intervention to control creation and spread of monopolies and in distribution of public good. Economic liberalism, in general, favors redistribution of income through taxes and welfarepayments.

Macroeconomics:

Study of the behavior of the whole (aggregate) economies or economic systems instead of the behavior of individuals, individual firms, or markets (which is the domain of Microeconomics). Macroeconomics is concerned primarily with the forecasting of national income, through the analysis of majoreconomicfactors that show predictable patterns and trends, and of their influenceon one another. These factors include level of employment/unemployment, gross national product (GNP), balance of paymentsposition, and prices (deflation or inflation). Macroeconomics also coversrole of fiscal and monetary policies, economic growth, and determination of consumption and investmentlevels.

Market:

Actual or conceptual place in commercialworld where forces of demand and supplyoperate, and where buyers and sellers interact (directly or through intermediaries) to tradegoods, services, or contracts or instruments, for money or barter.

Microeconomics:

Study of the economicbehavior of individualunits of an economy (such as a person, household, firm, or industry) and not of the aggregate economy (which is the domain of macroeconomics). Microeconomics is primarily concerned with the factors that affect individual economic choices, the effect of changes in these factors on the individual decisionmakers, how their choices are coordinated by markets, and how prices and demand are determined in individual markets. The mainsubjects covered under microeconomics includetheory of demand, theory of the firm, and demand for labor and other factors of production.

Money

The coins or notes which are used to buy things, or the amount of these that one person has.

Monopoly

Market situation where one producer (or a group of producersacting in concert) controlssupply of a good or service, and where the entry of new producers is prevented or highlyrestricted. Monopolistfirms (in their attempt to maximize profits) keep the price high and restrict the output, and show little or no responsiveness to the needs of their customers.