Mrs. Jacob - Economics - Chapter 2 - Global Economics
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32 terms
Terms | Definitions |
|---|---|
 imports | goods brought from other countries for domestic use |
| exports | goods sold to other countries |
| exchange rate | the price of a nation's currency |
| balance of trade | difference between the value of a nation's exports and imports |
| depreciation | fall in the prices of a currency throught he action of supply and demand |
| tariff | tax placed on an imported product |
| embargo | complete restriction on the import or export of a particular good |
| North American Free Trade Agreement | trade agreement between Mexico, Canada and US; designed to eliminate tariff barriers |
| inflation | prolonged rise in prices of goods and services; value of dollar is less. |
| invisible hand | competition |
| laissez faire | let people do as they choose |
| traditional system | economic system that is based on customs |
| command system | economic system that is based on government control |
| market system | economic system that the factors of production are owned by individuals |
| competition | business rivalry |
| economic security | an example would be FDIC |
| economic equity | just and fair to everyone |
| economic growth | produce more wealth through products and services |
| economic efficiency | best use of resources; expense doesn't exceed benefit |
| economic freedom | example is to choose a career of your liking |
| profit incentive | the desire to make money |
| private property | whatever is owned by individuals rather than by government |
| GNP | Gross National Product - the sum of all goods and services produced by citizens of a nation in a year |
| GDP | Gross Domestic Product - the sum of all goods and services produced in a country's borders during one year |
| economic stability | example of this is setting the minimum wage |
| traditional system | inefficient ways of production |
| traditional system | know your responsibility; strong family ties |
| command system | speed of change and rerouting of resources |
| command system | no incentive to work hard; lack of choices |
| market system | individuals answer the basic economic questions in this system |
| market system | dependant on assistance from government for those that cannot work in this system |
| mixed system | both market and command system |
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