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February 4, 2023 

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U.S. TREASURY SECURITY: A financial instrument or legal claim used by the federal government to borrow money. Treasury securities are issued by the U.S. Treasury to cover the federal government's budget deficit. They are classified as either Treasury bills, Treasury notes, or Treasury bonds.

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ECONOMY: The system of production, distribution, and consumption of goods and services that a society uses to address the problem of scarcity. The essential task of an economy is to transform resources into useful goods and services (the act of production), then distribute or allocate these products to useful ends (the act of consumption). Virtually all economies accomplish this task through a combination of decisions made through voluntary market exchanges and involuntary government rules and regulations.

     See also | economic system | three questions of allocation | institution | household sector | business sector | government sector | limited resources | unlimited wants and needs | ownership and control | resources | capitalism | private sector | public sector | private property | mixed economy | market-oriented economy | communism | socialism | pure market economy | pure command economy | first estate | second estate | third estate | fourth estate |


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MARGINAL UTILITY-PRICE RATIO

The ratio of the marginal utility obtained from consuming a good to the price of the good. This ratio is particularly important in determining consumer equilibrium, which is reached when the marginal utility-price ratios are the same for all goods. Equality between all marginal utility-price ratios is the rule of consumer equilibrium which is satisfied with utility maximization.

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