U3 Key International Economic Terms

Question 1

Compound Interest

Answer 1

interest calculated on the initial principal, which also takes into account all of the accumulated interest of previous periods of a deposit or loan

Question 2

Human Capital

Answer 2

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country

Question 3

Supply and demand

Answer 3

the amount of a commodity, product, or service available and the desire of buyers for it

Question 4

Barriers to Trade

Answer 4

anything that makes it harder to trade goods + services across borders

Question 5

Anti-trust

Answer 5

• A group of laws, established to regulate business practices
• ensure that fair competition occurs in an open market economy for the benefit of the consumers

Question 6

economic development

Answer 6

• Programs, policies, or activities that seek to improve the economic well-being and quality of life for a community
• will depend on the community you live in

Question 7

Foreign Currency Markets

Answer 7

the market in which foreign currency is traded for domestic currency

Question 8

Business Cycles

Answer 8

A cycle or series of economic expansion and contraction

Question 9

Scarcity

Answer 9

• the demand for a good or service is greater than that availability of the good or service
• there is a shortage of supply

Question 10

Monetary policy

Answer 10

to control either the interest rate payable for very short-term borrowing or the money supply