| Term | Definition |
|---|
| Economy | structure of production, distribution, and consumption of these goods and services |
| Producers | make and sell goods and services to satisfy |
| Private Ownership | refers to property and resoures individuals own and control |
| Public Goods | owned and controlled by government |
| Productive Resources | include the labor, land, factories, machinery, capital, and management skills used to produce goods and services |
| Law of Scarcity | all economic systems attempt to resolve the problem of limited resources and unlimited needs and wants |
| Law of Supply and Demand | is that price and supply tend to follow demand |
| Economic Competition | occurs when two or more sellers offer similar goods and services for sale in the marketplace |
| monopoly | a market in which there are many buyers but only one seller |
| antitrust laws | Laws that encourage competition in the marketplace |
| fiscal policy | a government policy for dealing with the budget |
| gross domestic product (GDP) | ecompasses only goods and services produced in a given year within a country |
| consumer price index (CPI) | a measure of the overall cost of the goods and services bought by a typical consumer |
| recession | the state of the economy declines |
| inflation | a general and progressive increase in prices |
| monetary policy | The management of the money supply and interest rates |
| reserve requirements | regulations on the minimum amount of reserves that banks must hold against deposits |
| discount rate | interest on an annual basis deducted in advance on a loan |
| open market operations | the buying and selling of government securities to alter the supply of money |
| international trade | trade between nations |
| importing | bringing goods into a country |
| exporting | sending goods out of the country |
| balance of payments | the difference between the amount of money that comes into a country and the amount that goes out of it |
| trade deficit | when a country imports more than it exports |
| protectionism | the policy of imposing duties or quotas on imports in order to protect home industries from overseas competition |
| trade barrier | any regulation or policy that restricts international trade |
| tariff | a government tax on imports or exports |
| import quota | a limit on the number of products in certain categories that a nation can import |
| exchange rate | the charge for exchanging currency of one country for currency of another |
| euro | the basic monetary unit of most members of the European Union |
Combine with other sets
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