| Term | Definition |
|---|
| Balance of Trade | Difference in value between countries imports/exports over a period of time. |
| Contract | Legally enforcable agreement between 2 or more parties, can be written, verbal, or even formed by a handshake. |
| Economic Indicator | Data/statistics that measure economic activity and business cycles. |
| Embargo | Ban on the import or export of a product. Rare and used for military or political reasons against a country. |
| GDP | $ value of consumer, business and gov't goods/services, and goods/services sold to other countries. |
| Monetary Policy | Controlling the supply of money and the cost of borrowing money (credit). |
| Oligopoly | When a small number of companies control an industry. |
| Quota | A limit placed on the quantities a product that can be imported. |
| Standard of Living | Countries econo,ic health, level of material comfort, (goods and services)/people = standard of living |
| Trust | Group of companies that band together to form a monopoly and restrict competition. |
| World Trade | Exchange of goods/services across international boundaries. |
| Breach of Contract | Occurs when one party fails to live up to the terms of the contract. |
| Copyright | Gives artists the legal right to own their creations. |
| Economic Slowdown | When the economy is in a slump, moving toward recession. |
| Economic Stimulation | When the economy speeds up, moving toward prosperity. |
| Imports | Goods and services one country buys from another. |
| International Trade | The exchange of goods and services between nations. |
| Multinational Corp. | Company that does business in many countries and has facilities and offices around the world. |
| Recession | Economic activity slows down, unemployment rises, GDP declines, less money to spend. |
| Tariff | Tax placed on imported goods to increase price in domestic market. |
| Trademark | Name, symbol, or characteristic that identifies a product. |
| Unemployment Rate | % of unemployed workforce looking for a job. |
| Budget Deficit | Gov. spends more than it collects. |
| Depression | High unemployment, low production, deep recession that effects the entire economy and lasts for years. |
| Exchange Rate | Price at which one currency can buy another currency. |
| Fiscal Policy | How the gov. collects and spends money. |
| Inflation | Prolonged rise in price of goods/services, buying power decreses, rise in prices for majority of goods/services. |
| Monopoly | When a company controls an industry or is the only one to offer a product or service. |
| Patent | Legal grant for the sale of an industry. |
| Recovery | Production starts to increase, follows recession/depression, people have more money, begin buying more. |
| The Fed | Regulates amount of money in circulation, controls interest rates, amount of money loaned. |
| Trade Surplus | When a country exports more than it imports. |
| Budget Surplus | When a gov. revenue exceeds its expenses for a period of time. |
| Domestic Trade | Production, purchase, and sale of goods/services within a country. |
| Exports | Goods/services one country sells to another. |
| Free Trade | Few or no limits on trade between countries. |
| Inflation Rate | % by which the average prices in economy rise. |
| Specialization | To focus on a particular activity, area, or product. |
| Prosperity | Low unemployment, high production, new businesses, peak in economic activity. |
| Protectionism | Practice of gov. putting limits on foreign trade to protect businesses at home. |
| Trade Alliances | Several countries merge their economies into one large market. |
| Trade Deficit | When a country imports more than it exports. |
Combine with other sets
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