Download Definitions of Economic Terms

By Gerald Jakabosky
Balance of Trade

the difference in
value over a period
of time of a country's
imports and exports
of merchandise

Princeton University. "WordNet Search
3.1." WordNet Search - 3.1. Web.
<http://wordnetweb.princeton.edu/perl/we
bwn?s=balance%20of%20trade>.

The ratio of exports
to imports in a
country over a
period of time.
Inflation

In economics,
inflation is a rise in
the general level of
prices of goods and
services in an
economy over a
period of time.

"Inflation." Wikipedia, the Free
Encyclopedia. Web. 13 Feb. 2012.
<http://en.wikipedia.org/wiki/Inflatio
n>.

Over time the price of
goods and services
will increase because
more money is
printed. This causes a
decrease in the worth
of a dollar bill.
Capitalism

an economic system
characterized by private or
corporate ownership of capital
goods, by investments that
are determined by private
decision, and by prices,
production, and the
distribution of goods that are
determined mainly by
competition in a free market

"Capitalism." Dictionary and Thesaurus Merriam-Webster Online. Web. 13 Feb.
2012. <http://www.merriamwebster.com/dictionary/capitalism>.

An economy based
on independent
business owners
and their decisions.
Socialism

a theory or system of
social organization that
advocates the vesting of
the ownership and control
of the means of production
and distribution, of capital,
land, etc., in the
community as a whole.

"Socialism | Define Socialism at
Dictionary.com." Dictionary.com. Web. 13
Feb. 2012.
<http://dictionary.reference.com/browse/soci
alism>.

An economic system
that creates a sort of
public ownership of
capital, land, and
other properties.
Political Systems

A complete set of institutions,
political organizations,
interest groups (such as
political parties, trade unions,
lobby groups), the
relationships between those
institutions and the political
norms and rules that govern
their functions (constitution,
election law).

Wikimedia Foundation. political
system. n.d. 14 February 2012
<en.wiktionary.org/wiki/political_syste
m>.

Different types of
system to be govern
by.
Economic Systems

The institutional
means through
which resources are
used to satisfy
human wants.

ITS Tutorial School. E - Earliest
Finish Time. n.d. 14 February
2012
<http://www.tuition.com.hk/diction
ary/e.htm>

A system of trade
that provided a predecided way to
transaction goods.
Foreign Exchange Rate

The price
relationships
between two
currencies that are
freely determined by
the forces of supply
and demand.

Global Foreign Exchange
Educators. Global Forex
Educators. n.d. 14 February 2012
<http://globalforexeducators.com/
glossary-of-terms>

A rate at which
foreign countries
exchange currency
due to supply and
demand.
Gross Domestic Product

A measure of the
production of all goods and
services in a country,
usually expressed as an
annual total.

Hudson, Doug. rrsp.org glossary
dictionary. n.d. 14 February 2012
<http://www.rrsp.org/glossary.htm
#G>.

The total number of
products and
services that a
country expresses.
Gross National Product

the total income earned by
members of a nation, not
including foreiners but
including members abroad;
also the total expenditures on
goods produced by members
of a nation

Fundamentalfinance.com. Economics
Glossary. n.d. 14 February 2012
<http://economics.fundamentalfinance.
com/economicglossary.php>.

The total amount of
goods produced
including goods
produced by
American countries
outside of the U.S.
Exports

A commodity, article,
or service sold
abroad

Google. export - Google Search. n.d. 14
February 2012 <http://www.google.com>.

Goods produced in
one country and
sold into another.
Imports

A commodity, article,
or service brought in
from abroad for sale

Google. export - Google Search. n.d.
14 February 2012
<http://www.google.com>.

Good bought from
another country.
Scarcity

Available in small
supply; opposite of
abundant. Usually
meaningful only in
relative terms,
compared to demand
and/or to supply at
another place or time.

Deardorff. International
Economics Glossary. n.d. 14
February 2012 <http://wwwpersonal.umich.edu/~alandear/
glossary/s.html>

An item that is
available in small
quantity.
Surplus

When export values
are greater than
import values for a
given time period.

Census.gov. n.d. 14 February
2012
<http://www.census.gov/foreigntrade/reference/definitions/index.
html#S>.

There is an
abundance of a
product and not a
high enough
demand.
Tariff

A fee that a government
charges to the importer of
a foreign good. Tariffs are
passed along to the
consumer through higher
prices on imported goods.

ICONS Glossary. n.d. 14 February
2012
<http://www.nsu.ru/archive/icons/win/gl
osary.htm#sectT>.

A tax on imported
goods.
Quota

a limitation on
imports

Princeton University. "WordNet
Search 3.1." WordNet Search 3.1. Web.
<http://wordnetweb.princeton.edu
/perl/webwn?s=Quota>.

The requirement of
imports that one
must have.
Bibliography
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Census.gov. n.d. 14 February 2012 <http://www.census.gov/foreigntrade/reference/definitions/index.html#S>.
Deardorff. International Economics Glossary. n.d. 14 February 2012 <http://wwwpersonal.umich.edu/~alandear/glossary/s.html>.
Dictionary.com. Socialism. n.d. 13 February 2012 <http://dictionary.reference.com/browse/socialism>.
Fundamentalfinance.com. Economics Glossary. n.d. 14 February 2012
<http://economics.fundamentalfinance.com/economicglossary.php>.
Global Foreign Exchange Educators. Global Forex Educators. n.d. 14 February 2012
<http://globalforexeducators.com/glossary-of-terms>.
Google. export - Google Search. n.d. 14 February 2012 <http://www.google.com>.
Hudson, Doug. rrsp.org glossary dictionary. n.d. 14 February 2012
<http://www.rrsp.org/glossary.htm#G>.
ICONS Glossary. n.d. 14 February 2012 <http://www.nsu.ru/archive/icons/win/glosary.htm#sectT>.
ITS Tutorial School. E - Earliest Finish Time. n.d. 14 February 2012
<http://www.tuition.com.hk/dictionary/e.htm>.
Merriam-Webster. Capitalism. n.d. 13 February 2012 <http://www.merriamwebster.com/dictionary/capitalism>.
Princeton University. WordNet Search. n.d. 13 February 2012
<http://worldnetweb.princeton.edu/perl/webwn?s=balance%20of%20trade>.
Wikimedia Foundation. political system. n.d. 14 February 2012
<en.wiktionary.org/wiki/political_system>.
Wikipedia, The Free Encylopedia. Inflation. n.d. 13 February 2012
<http://en.wikipedia.org/wiki/inflation>.