| Term | Definition |
|---|
| economy | structure of production, distribution, and consumption of these goods and servies. |
| producers | make and sell goods and services to satisfy consumer needs and wants. |
| private ownership | refers to property and resources individuals own and control as oppposed to public goods owned and controlled by government. |
| public goods | property and resources owned and controlled by the government. |
| productive resources | all the resources such as labor,land,factories, machinery ,capital, and management skills that are used to provide and produce goods and services |
| law of scarcity | resources are scarce while the needs they must satisfy are never ending |
| law of supply and demand | price and supply tend to follow demand |
| economic competition | tow or more sellers offer similiar goods and services for sale.each seller tries to attract more customers and sales, and reap finacial gain |
| monopoly | a market situaton in which only one seller produces the entire output of and industry or sells a product or service for which there is no substitute |
| antitrust laws | laws and legal actions designed to ensure fair trade and competition and to prevent monopolies in trade |
| fiscal policy | government policies related to taxing and spending |
| gross domestic product(GDP) | total value of goods and servies produced within a country in one year |
| consumer price index(CPI) | measurement of changes in the prices of selecterd consumer goods and services |
| recession | phase in the business cycle in which economic activity declines and unemployment increases |
| inflation | increase in prices or decrease in the value of money reulting from and increase in the amount of money in circulation relative to the amount of goods and services available |
| monetary policy | government policies that control the amount of money in circulation by controlling interest rates and credit terms |
| discount rate | interest rate federal reserve banks charge commercial banks for credit when they borrow |
| open market operations | buying or sellingh of treasury securities and other government debt instruments in the marketplace by the federal governments |
| international trade | buying and selling of products and servieces between nations |
| importing | buying products from other nations |
| exporting | selling products to other nation |
| balance of payments | and account of the flow of goods services and moneyu coming into and going out of the country |
| trade deficit | the loss of economic power due to a country importing more than it is exporting over a period of time |
| protectionism | policy of discouraging imports through trade barriers such as tariffs or import quotas in order to portect american buseinesses and jobs form foreign competition and to reduce the trade deficit |
| trade barrier | any acion taken to control or limit imports |
| tariff | a tax on imported products |
| import quota | limitation on the number or quantity of imports allowed in a country |
| exchange rate | value of one currency compared to another |
| euro | common currency used in europe among the nations participating in the economic and monetary union |
| reserve requirements | amount of cash that banks and other financial institutions must hold in reserve as a percent of their deposits |
Combine with other sets
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