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Economic Terms
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Economy
System by which products are
produced, distributed, and consumed.
Think: MONEY!!!
imports
products brought
into one country
from another to sell.
Think Import =
INport
exports
products from one
country sent out to
another to sell.
Think of EXPORT-
EXIT
http://atlas.media.mit.edu/profile/country/usa/
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.
Types of products:
Domestic: Products
produced and sold
in the same country.
International/Foreign:
Products made in one
country and sold in
another.
Capital
Is money and goods
used to help people
make or do things.
You need capital to
run a business.
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.
Entrepreneurship
Is the act of running a business and taking on the
risks of that business.
Usually describes individual or small businesses.
barter system
goods and services
are exchanged for
other goods and
services-no money is
used
Basically, people are
trading.
Developing vs. Developed Country
Developing Country:
a country who’s
economy is based
on agriculture and is
trying to become
industrialized. Also
known as an
emerging market.
Developed Country:
a country who’s
economy is based
on industry and
manufacturing.
These countries do
not need assistance
from others for
survival.
Developed & Developing Countries
supply and demand
supply- how much
of something there
is.
demand- how many
people want an
item.
supply and demand (cont.)
If supply is higher
than demand, the
price goes down.
If demand is higher
than supply, the
price goes up.
inflation
A prolonged rise in
prices; you get less
for your money than
you used to get.
Scarcity
Lack of a resource.
This can affect
supply and demand.
HOW????
Opportunity Cost
The opportunity cost of something is
what you give up to make it or buy it.
recession
a downturn in
business activity and
economic prosperity;
not as severe as a
depression
6 Months straight of
negative growth in a
country’s GDP.
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 country’s GDP.
Globalization
The process of countries being involved
in international trade.
Globalization increases the ties among
the world’s economies.
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