Vocabulary Terms
Means through which goods and services can be exchanged
What is Medium of Exchange?
Amount of a good or service that businesses are willing and able to produce.
What is a Supply?
An economic system in which CUSTOM decides what people do, make, buy, and sell.
What is traditional economy?
Providing raw materials or natural resources to others; Primarily agricultural industries
What is a Primary Industry?
Process in which countries are increasingly linked to each other through culture and trade
What is globalization?
One nation relies on another to provide goods or services the country doesn’t produce
What is Economic Interdependence?
Desire of good or service and # of people who are ready to buy at certain price
What is a demand?
List the type of economic model given the respective country:
A. Sweden
B. Taiwan
C. China
What is:
A. Sweden - Socialist
B. Taiwan - Democracy
C. China - Communist?
Goods and services are exchanged; examples include: wholesale, retail, and service industries
What is a Tertiary Industry?
Works with nations to decrease embargoes, taxes, and quotas
What is the World Trade Organization?
Something that holds its value over time
What is Store of Value?
Says that consumers will buy more of a good or service when the price is low.
What is a Law of Demand?
A system based on private ownership, free trade, and competition
What is a market economy?
The use natural resources or raw materials to make other products; primarily manufacturing industries
What is a Secondary Industry?
Offers emergency loans to countries in financial trouble
What is the International Monetary Fund (IMF)?
Value of what you give up in a tradeoff
What is Opportunity Cost?
Says businesses will produce more of something when they can charge a higher price.
What is a Law of Supply?
An economic system in which a central government decides what goods will be made and who will receive them.
What is command economy?
This type of industry involves the research and distribution of information
What is a Quaternary Industry?
Provides loans for large projects, like building schools, in developing countries
What is the World Bank?
Measurement of economic value
What is Unit of Account?
The relationship between risk and return can be highlighted through this investment (With great risk can lead to great reward)
What are stocks?
This economic style is closest to a market economy
What is a capitalistic economy?
Four Main Factors of Production
1. Natural resources: raw materials and land
2. Capital: goods used to make other goods, like machinery and tools
3. Labor: human time, effort, and skills
4. Entrepreneurs/Human Capital: people who organize, manage and assume risk of businesses
Name the current trade agreement between the North American Nations of the United States, Mexico and Canada
What is the United States-Mexico-Canada Agreement (USMCA)?