The Basics
People who buy and use goods and services.
What are consumers?
The limited nature of resources, requiring people to make choices.
What is scarcity?
The human effort used to produce goods and services.
What is labor?
The availability of employment and labor.
What is the labor market?
To bring goods or services into a country from abroad for sale.
What is to import?
People or businesses that make or provide goods and services.
What are producers?
The amount of a good or service that producers are willing and able to sell at different prices.
What is supply?
A general increase in prices and fall in the purchasing value of money.
What is inflation?
A group of workers who join together to increase their power in the labor market.
What is a union?
To send goods or services to another country for sale.
What is to export?
The financial gain made in a transaction or operation after subtracting expenses
What is profit?
The desire and ability of consumers to purchase goods and services at various prices.
What is demand?
The quantity of goods and services that can be purchased with a unit of currency.
What is buying power?
When workers stop work to force an employer to agree to their demands.
What is a strike?
Taxes imposed on imported goods and services.
What are tariffs?
The value of the next best alternative given up when a choice is made.
What is opportunity cost?
A situation in which the quantity demanded is greater than the quantity supplied.
What is a shortage?
An unexpected event that suddenly changes the supply of a product or commodity.
What is supply shock?
The process by which employees, represented by their union leaders, negotiate with the employer.
What is collective bargaining?
International trade left to its natural course without tariffs, quotas, or other restrictions.
What is free trade?
An economic system where prices and production are determined by unrestricted competition.
What is a free-market system?
A situation in which the quantity supplied is greater than the quantity demanded.
What is a surplus?
The point where the quantity demanded equals the quantity supplied.
What is market equilibrium?
To contract work from outside a company, potentially from a company that is outside of the country.
What is outsourcing?
The practice of shielding a country's domestic industries from foreign competition by taxing imports.
What is protectionism?