| Term | Definition |
|---|
| economics | the study of production, distribuation, and use of goods and services |
| economy | the system that involves all of the activities that people do to earn a living |
| market economy | A system where buisness owners and customers make decisons about what to make, sell, and buy |
| command economy | The system where the gov't decides what, and how much, will be produced and how much it will be sold for |
| traditional economy | The system in which decisons are made largely by repeating the actions from an earlier time or generation. |
| mixed economy | the system which combines two other systems; the U.S. is an example |
| gross national product | the value of all goods and services that a country produces in one year |
| gross domestic product | goods and services produced with in a country |
| free enterprise | An economic system of a developed country which is organized around the production and distribution of goods and services |
| entrepreneur | A person who organizes a business venture and assumes the risk |
| capitalism | Economic system in which private individuals control the factors of production |
| socialism | an economic system of government which advocates state ownership of the means of production with equal distribution of goods among the people. The central goal is to establish a "worker's paradise" - an ideal state with perfect equality. |
| capital | the money and tools needed to make a product |
| exports | any good or service brought into one country from another country in a legitimate fashion, typically for use in trade. |
| imports | any good or service brought into one country from another country in a legitimate fashion, typically for use in trade |
| tariff | a table or list of duties and customs imposed by a government on imports and exports |
| scarcity | when a product or desired item is in low supply but high demand |
| supply | how much of an item there is |
| demand | how many people want to buy something |
| producer | one who makes a product or provides a service |
| consumer | one who gets a product or service from someone |
| interdependence | depending on another country for resources or goods and services |
| bartering | a medium in which goods or services are directly exchanged for other goods and/or services with a common unit of exchange (without the use of money) |
| inflation | a persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services |
| government | a system of lenders and laws that help us live together in a community |
| hierarchy | ruled by those in higher authority |
| citizen | a member of a community |
| representatives | elected officials who vote on major issues |
| democracy | ruled by the people |
| direct democracy | Athens, Greece - all citizens vote on all issues |
| representative democracy | citizens vote directly on major issues and the representatives vote on everything first |
| presidential | leader and his cabinet with two other branches to balance power |
| parliamentary | the parliament (legislative branch) elects the prime minister |
| republic | citizens vote on the leaders and they make ALL the decisions |
| autocratic | ruled by one person |
| dictatorship | one person controls the media, military and all government (autocratic) |
Combine with other sets
Share on Facebook
Share on MySpace