26 terms

Economy Vocabulary

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GDP (gross domestic product)
total market value of all final goods and services produced in a country in a given year
economy
the study of how a market makes, distributes, and consumes products and services
per capita
per person
Scarcity
the limited supply of something in the chance that a country may run out of it
Trade
the commercial exchange ( buying an selling on domestic or international markets) of goods and services
Market Economy
an economy that allows individuals to make their own decisions about what to produce, how to produce it, and for whom to produce it
Command Economy
An economy where the government where the government makes all of the economic decisions
Traditional Economy
An economy where economic decisions are based on customs handed down from generation to generation
Mixed Economy
an economic system that combines private and state enterprises and economic decisions
Trade Barriers
A government regulation that restricts global trade
Quota
The number limit on how many items of a particular product can be imported from a particular company.
Tariffs
tax added to the value of goods that are imported. It raises the price of the imported product. It helps domestic producers of similar products to sell them at higher prices.
Human Capital
The set of skills which an employee acquires on the job, through training, or through experience, which increases that employees value in the market place.
Capital Goods
products that have value ( like factories, machinery, and new technology) ( Goods, such as machinery, used in the production of commodities; producer goods)
Entrepreneurship
someone who organizes a business venture and assumes the risk for it
Embargo
order that restricts or prohibits trade with another country, especially during conflict.
Currency
Money in any form when in actual use as a medium of exchange, especially circulating paper money.
Capital Investment
Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in form of interest, income, or appreciation of the value of the instrument. It is related to saving or deferring consumption.
Production
The creation of value or wealth by producing goods and services.
Consumption
The using up of goods and services by consumer purchasing or in the production of other goods.
Distribution
The process of marketing and supplying goods, especially to retailers
Foreign Exchange
the system by which one currency is exchanged for another; enables international transactions to take place.
Free Enterprise
The idea that you have the right to own property or businesses and to make a profit without government interference
Free Trade
removing trade barriers so that goods flow freely among countries
Export
When countries produce goods and trade with other countries
Import
When countries cannot produce as much as they need of a good, they buy it from another country.