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capital resources
tools, factories, machinery to
build goods
consumers
those who purchase goods and
services
developed country
urbanized, modern industrial
society using high technology
economize
to base decisions on possible
costs VS possible benefits
exports
goods and services sold to
other countries
Federal Reserve
central bank of the US and government
agency primarily responsible for our
monetary policy
imports
goods and services purchased
from other countries
incentive
reward offered to try to persuade people
to take certain economic actions
inflation
rising prices; the value of the
currency is falling.
interdependence
a relationship between countries in which
they rely on one another for resources,
goods, or services
International Monetary Fund
a United Nations agency to promote trade
by increasing the exchange stability of the
major currencies
LDC (less developed country)
often more agricultural, higher poverty,
less modern, lower quality of life, early
stage of econ development
negative incentive
try to avoid punishment,
hardship, pain
opportunity cost
the highest-valued alternative that must
be given up to engage in an activity
ownership
right to enjoy benefits of owning but
also carries responsibilities
per capita GDP
value of goods & services a country
produces per year divided by its
population; to gauge economic well being
positive incentive
try to obtain reward, bargain,
benefit
productive resources
natural resources, human resources, &
capital resources combined are used to
make goods and services.
profit
amount of cash left after
paying all expenses
savings
unspent income in the present
scarcity
not enough, all resources are limited,
limited quantities of resources to meet
unlimited wants
specialization
produce fewer items but at an expert
level; then trade those for other things
wanted
stock
shared ownership in a company: get some
of the profits but also must bear some of
the loss.
taxes
fees paid to the government by people
and businesses to support government
services.
trade defecit
spend more money on imports
(buy) than what is sold as exports
trade surplus
have more money from exports
(sell) than from imports (buy)
types of economies
market, command, traditional,
mixed
United Nations
an organization of independent states
formed in 1945 to promote international
peace and security