Economics Online Tutor
Glossary and Dictionary of
Economics Terms
UTILITY: A measure of the satisfaction, or happiness, that something gives to an individual.

VARIABLE COST: The cost associated with a factor of production that changes as the level of output changes.

VELOCITY OF MONEY: The average number of times that a given money supply is spent in an economy in one year.

WAGES: The price paid to labor.

WEALTH EFFECT: A price factor of aggregate demand.  Financial assets (money, stocks, changes in the price level.  With any given
amount of financial assets, the higher the price level, the lower the purchasing power, and therefore the lower the real wealth.

WHOLESALE PRICE INDEX: Former name for the Producer Price Index.

WPI: Wholesale Price Index.  Former name for the Producer Price Index.