Economic Vocabulary
What is the economic problem caused by unlimited wants and limited resources?
What is scarcity?
What happens to the price of a product when demand increases and supply remains the same?
What is the price increases?
What type of economy is controlled by the government?
What is a command economy?
What do we call anything that is generally accepted in exchange for goods and services?
What is money?
What is the exchange of goods and services between countries?
What is international trade?
What do we call the next best alternative given up when making a decision?
What is Opportunity Cost?
What is it called when supply exceeds demand?
What is a surplus?
What type of economy is based on customs and traditions?
What is a traditional economy?
What institution is responsible for printing money and regulating monetary policy in the U.S.?
What is the federal reserve?
What is a tax on imported goods?
What is a tariff?
What term describes the total value of all goods and services produced in a country in a year?
What is Gross Domestic Product (GDP)?
What curve typically slopes downward on a supply and demand graph?
What is the demand curve?
What type of economy is driven by consumers and businesses with little government involvement?
What is a market economy?
What is the term for interest charged on a loan?
What is an interest rate?
What term describes when a country sells more goods than it imports?
What is a trade surplus?
What is the act of focusing on a limited number of activities to improve efficiency?
What is specialization?
What term describes the point where supply equals demand?
What is equilibrium?
What is the term for an economy that blends elements of market and command systems?
What is a mixed economy?
What type of bank account allows you to earn interest on your deposits over time?
What is a savings account?
What does the term “globalization” refer to?
What is the increasing interconnectedness of economies and cultures?
What is the system in which private citizens own most of the means of production?
What is capitalism (or a market economy)?
What law states that as the price of a good increases, the quantity supplied also increases?
What is the Law of Supply?
Which country is a well-known example of a command economy in the 20th century?
What is the Soviet Union?
What is inflation?
What is the general increase in prices and fall in the purchasing value of money?
What is a benefit of free trade?
What is access to more goods at lower prices (or increased efficiency)?