Economic Terms

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Economic Terms

• Copy for your notes!

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Economy

• System by which products are produced,
  distributed, and consumed.
• Think MONEY!!!

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imports

• products brought into one country from another to
  sell.
• Think Import INport

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exports

• products from one country sent out to another to
  sell. Think of EXPORT-EXIT

• http//atlas.media.mit.edu/profile/country/usa/

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tariffs

• a fee or tax that a government charges for goods
  entering the country
• A government will impose tariffs to keep people
  from buying goods that are imported.

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Types of products

• Domestic Products produced and sold in the same
  country.

• International/Foreign
• Products made in one country and sold in
  another.

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Capital

• Is money and goods used to help people make or do
  things.
• You need capital to run a business.

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Capital continued.

• 1. Financial assets or the financial value of
  assets, such as cash.
• 2. The factories, machinery and equipment owned
  by a business and used in production.           
  Capital can mean many things. Its specific
  definition depends on the context in which it is
  used. In general, it refers to financial
  resources available for use. Companies and
  societies with more capital are better off than
  those with less capital.

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Entrepreneurship

• Is the act of running a business and taking on
  the risks of that business.
• Usually describes individual or small businesses.

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barter system

• goods and services are exchanged for other goods
  and services-no money is used
• Basically, people are trading.

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Developing vs. Developed Country

• Developing Country a country whos economy is
  based on agriculture and is trying to become
  industrialized. Also known as an emerging market.

• Developed Country a country whos economy is
  based on industry and manufacturing. These
  countries do not need assistance from others for
  survival.

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Developed Developing Countries
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supply and demand

• supply- how much of something there is.

• demand- how many people want an item.

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supply and demand (cont.)

• If supply is higher than demand, the price goes
  down.
• If demand is higher than supply, the price goes
  up.

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inflation

• A prolonged rise in prices you get less for your
  money than you used to get.

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Scarcity

• Lack of a resource.
• This can affect supply and demand.
• HOW????

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Opportunity Cost

• The opportunity cost of something is what you
  give up to make it or buy it.

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recession

• a downturn in business activity and economic
  prosperity not as severe as a depression
• 6 Months straight of negative growth in a
  countrys GDP.

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depression

• a severe recession with high unemployment
  (jobless rate) and low levels of trade and
  investment
• 1 year (4 quarters) of negative growth in a
  countrys GDP.

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Globalization

• The process of countries being involved in
  international trade.
• Globalization increases the ties among the
  worlds economies.

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Memory Cues

• Create a memory cue for each of the economic
  terms. Use a graphic, word, or phrase to help
  you remember what each term means. Be
  Creative!!!
• Ex. Exports EXIT