There's a difference between Adwords and Adsense
All People Who Are new To Programs Get Confused Between the Two Words..Adwords And Adsense..
Heres The Difference:-
Adwords is the advertising program through which people buy text ads from Google. Those ads can run on Google's site, on their partners' sites like another search engine (like a meta engine)for example or on webmaster/publisher pages - the content network.
In Short AdWords= Advertisers who want to advertise about themselves/there products/anything.
The Adsense program refers to the program that publishers sign up for to run those Google ads on their site. Adsense is the contextual ad program running on people's pages. Publishers do NOT pay anything, But Google pays money to THEM(publishers) for each click originating from their pages.
In Short AdSense= Publishers who Show other people ads on there website/blog and earn money for that.