Types of Economies
Organizes how goods and services are produced, distributed, and consumed within a society
Economy
Intervals of expansion and contractions in the economy
Business Cycle
When a producer can produce more than another country at a lower opportunity cost
Comparative advantage
Measures the overall health of the economy
Market Indicators
Money owed
Debt
An economic system where two forces, known as supply and demand, direct the production of goods and services
Market economy
Growth in the economy
Expansion
Restriction on trade of goods between two countries
Unemployment rate
Central banking system in the U.S.
Federal Reserve
Economic system where traditions, customs, and beliefs help shape the goods and services produced
Traditional economy
Decline in the economy
Contraction/Recession
Government imposed trade restriction on imports and exports
Quotas
Cost/Standard of Living
A system for buying and selling shares of companies
Stock Market
Economic system that controlled by the government
Command economy
Lowest point of economic activity
Trough
Free-market policy
Laissez-faire
The sum total of the values of all the goods and services produced in a year in a nation
Gross Domestic Product (GDP)
Government policy that attempts to manage the economy by controlling taxes and spending
An economy in which private companies exists in combination with a considerable amount of government regulation and promotion
Mixed economy
A recession lasting more than 3 years
Depression
Goods or services sent to another country
Exports
Measure of the overall cost of goods and services bought by a typical consumer
Consumer Price Index (CPI)
An excess of federal expenditures over federal revenues
Deficit