Unit 1 Vocabulary Flashcards
The study of how individuals and nations handle scarcity
Economics
A means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country.
Economic Systems
An economy in which production, investment, prices, and incomes are determined centrally by a government.
Command Economy
An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.
Market Economy
An economic system combining private and public enterprise.
Mixed Economy
A system where goods production and distribution are driven by time-honored beliefs, customs, culture, and traditions.
Traditional Economy
The issue of having unlimited wants and needs but limited resources
Scarcity
Something that is necessary to live and function and something that can improve your quality of life.
Wants and Needs
The process by which businesses or other organizations develop international influence or start operating on an international scale.
Globalization
The dependence of two or more people or things on each other.
Interdependence
The action of buying and selling goods and services.
Trade
An economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners.
Comparative Advantage
The ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.
Absolute Advantage
The theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports.
Protectionism
A tax or duty to be paid on a particular class of imports or exports.
Tariff
