ECONOMIC SYSTEMS
Capitalism
An economic system where individuals own businesses and compete in a free market.
Inflation
A general increase in prices and fall in the value of money.
Profit
The money a business keeps after paying all costs.
Tax
Money collected by the government to pay for public services.
Export
A good or service sold to another country.
Command Economy
An economy where the government controls production and prices.
Recession
A period of economic decline with reduced trade and employment.
Labor
Work done by people to produce goods or services.
Subsidy
Financial help from the government to support a business or industry.
Import
A good or service bought from another country.
Mixed Economy
A system combining free market and government control.
Interest Rate
The percentage charged when borrowing money, or earned when saving.
Entrepreneur
A person who starts and runs a business.
Regulation
A rule made by the government to control business activities.
Tariff
A tax on goods brought into a country.
Free Market
An economy where prices are determined by supply and demand, not the government.
Credit Score
A number that shows how likely you are to repay borrowed money.
Corporation
A large company or group recognized as a single entity.
National Debt
The total amount of money the government owes.
Trade Deficit
When a country imports more than it exports.
Opportunity Cost
The value of the next best alternative you give up when making a choice.
Federal Reserve
The central banking system of the United States.
Productivity
The amount of output produced per unit of input, such as labor, time, or resources.
Fiscal Policy
Government decisions about taxes and spending to influence the economy.
Globalization
The process of businesses and cultures becoming more connected internationally.