Resources
Countries, individuals, and even summit teams must make certain what including how to make the best use of scarce resources such as natural, human, and capital resources, but countries can never satisfy all of the wants and needs of all people.
Economic Choices
In the global economy, this is good because it leads to many benefits, including lower prices, better quality, and the innovation of new products.
When we say the world is getting smaller and more connected, we are describing a process called globalization. This means in part that conditions in one country are having an increasingly greater impact on other countries.
Globalization
If a group of students did not enjoy spending time together, the individuals would probably seek out other friends. Likewise, people and countries engage in what and cultural connections when they both expect to gain something of value.
Trade
Total spending within a country’s economy declines when what is reduced?
Consumer spending
When a country’s resources such as labor, materials, or natural resources are what, it could only produce more of a particular product if it decided to produce less of other products.
Fully Employed
When a country or individual chooses to spend resources on one project or product, it gives up the opportunity to spend those resources on other goods, services, or projects. This is called the what of that country’s decision?
Opportunity cost
Historically, the most effective ways to improve a country’s what are through increased competition, taking investment risks, international trade, and technological change.
Standard of Living
In a free trade global market economy, when the United states trades wheat to Saudi Arabia for oil, both countries what?
Gain
When a country experiences a what, it means that more people are employed. When more people are employed, this leads to an increase in economic growth.
Decline in unemployment rate
The market value of a nation’s goods and services is called its what?
GDP
A country’s what refers to its natural resources, human resources, and capital goods.
Productive Resources
All countries and individuals seek to improve their standard of living and to make their economies grow. In the short term, they might accomplish this temporarily by borrowing money and spending more, but to make this more permanent, they should invest in what like education, technology, and infrastructure.
Long-Term Improvements
What is the price of one country’s currency in terms of another country’s currency?
When countries what in the production of certain goods and services, one of the advantages is that the country can produce more of some goods at a lower cost.
Specialize
When the contrie's GDP is divided by its population, what does it become?
GDP per capita
In what, the government owns all industries. Production goals and wages are set by the government. The government also provided education, child care, and medical care for its citizens.
Command Economies
What economies rely on competition to reach a price of goods and services that will cause importers to purchase and exporters to sell these goods and services.
Free Market
The value of a currency can change as supply and demand changes. What is this called?
A flexible exchange rate
If China has a what over the United States in producing consumer goods, this means that the opportunity cost of producing consumer goods in China is LOWER than in the United States. This usually means that China should specialize in consumer goods and the United States should specialize in something else.
Comparative Advantage
A country’s potential output of goods and services, its GDP, is limited by the quantity and quality of its resources, including its labor, capital, and natural resources does what?
Limits the GDP
Less developed countries tend to have agriculturally dominated economics and large holdings of natural resources. What are these in terms of countries?
Characteristics
One action that governments might take to stimulate the economy and increase consumer spending is to reduce what?
Taxes and Tarifs
What occurs when a country imports more goods than it exports?
Trade Deficit
Who does the Government impose tariffs on?
Imports