Essential Economic Terms for Labor and Production
Labor Market and Population Categories
- Unemployed population: People aged 16 or older who aren't in paid employment but who are available for work and are seeking paid employment.
- Economically active: People aged 16 or older who are working for a salary or are seeking employment.
- Economically inactive: People between 16–64 who receive salaries.
- Employed: People who are currently working.
Factors of Industrial Production
- Raw materials: Natural resources from which goods are made.
- Energy: Needed to power machines.
- Workforce: People who work in factories.
- Market: A place where manufactured goods are sold.
- Transport: Needed to move raw materials, people, and goods.
- Capital: The money needed to buy raw materials and equipment.
- Site: The place needed to build a factory.
Business Finance and Operational Costs
- Energy tariff: The cost of the energy necessary in a production plant. It can be electricity, gasoil, etc.
- Materials: Raw or semi-processed products necessary to produce new products.
- Revenue (irabazia): Money received by the company for the sale of goods or services.
- Machinery and equipment: Machines, tools, computers, etc., necessary to produce the product.
- Wages/salary: Payments to employees in exchange for their labor.
- Suppliers: People who provide materials.
- Profits: The portion of money received that remains after paying for materials, wages, and investments.
- Expenses: The cost of all the resources needed in order to produce goods.