1.
aggregate demand: total demand for goods and services in an economy
2.
aggregate supply: total supply of goods and services in an economy
3.
bourgeoisie: group in a society that carries on commerce and industry (the middle class, distinct from landowners, wage earners, farmers)
4.
deficit spending: practice where a governemnt spends more money than it receives as revenue. Usually refers to the conscious effort to stimulate economic growth by lowering taxes or increasing governemnt expenditures
5.
devaluation: official reduction in the exchange value of a currency by lowering its gold equivalency or its value relative to another currency
6.
diversification: a variety of exports including industrial and agricultural goods; can generate wealth and a favorable balance of trade for a country
7.
economic growth: increase in a nations DNP (4-5% a year is considered good)
8.
economic warfare: using a variety of economic means (sanctions, embargos, tariffs) to hurt the economy of a rival nation(s)
9.
embargo: government order prohibiting the entry or departure of commercial ships of planes. also refers to any restriction imposed on commerce by law
10.
favorable/unfavorable balance of trade: when a nation exports more than it imports; or the reverse
11.
free trade: trade carried on without governemnt regulation, especially international trade
12.
free trade are (FTA): territory covered by an economic cooperative arrangement among two or more nations
13.
G-7: seven most industrialized nations (USA, UK, FR, Ger., Italy, Japan, Canada)
14.
GDP: gross domest product (only within a nation)
15.
globalization: movement of nations toward more and more economic interdependence
16.
GNP: gross national product (everywhere)
17.
heavily indebted poor countries (HIPCs): nations facing unsustainable debt burdens, but have tried to reform according to the IMF
18.
infrastructure: the structure that underlies and makes possible all economic activity in a country (communications, roads, bridges, schools, etc...)
19.
International Monetary Fund: based in Washington, DC; provides financial advice and funding to countries that are experienceing debt payment difficulties
20.
laissez-faire: "hand off" free market economic system; most associated with capitalism
21.
magacity: urban area over 10. mil People
22.
monocultural exportation: a nation being too dependant on one major crop; leads to poverty
23.
most favored nation (MFN): economic treaty between two nations where one offers best deal to the other; usually reciprocated (ex. USA and China)
24.
NAFTA: North American Free Trade Agreement (1994) (USA, Canada, Mexico) 2nd largest free trade are (EU 1st) in the world
25.
nationalize: to take over ownership by a national governement
26.
per capita income: wealth of a nation (GNP) divided among its population
27.
private sector: part of the economy NOT involved with the public sector (government)
28.
privatization: transferring governemnt ownership to individuals
29.
protectionism: protecting domestic manufactures from foreign competition by imposing tariffs and quotas on imported goods
30.
sanctions: a coercive economic measure, usually adopted by several nations, for forcing a country resisting international law to desist or yeild to adjudication
31.
standard of living: quality of life of a nation based on goods and services available to the population
32.
tariff: a "tax" imposed by a government on imported or exported goods
33.
World bank: a multinational lending agency that tried to reduce poverty by promoting sustinable economic growth for nations in assistance
34.
World trade organization (WTO): est. in 1995; a multinational organization that helps regulate and promote global trade issues
