Economy
What do we call the increase in the production of goods and services in an economy over time?
Economic growth.
What do we call goods and services that a country produces and sells to customers in other countries?
Exports
What term describes the increasing economic integration and interdependence of countries around the world?
Globalization
What economic problem occurs when the general level of prices for goods and services rises over time?
Inflation
What indicator combines information about health, education and standard of living to measure human development?
HDI
What concept describes the long-term improvement of a country’s economy and the living standards of its population?
Economic development.
What do we call goods and services that a country purchases from other countries?
Imports
Name one major economic opportunity that globalization can create for a country.
Foreign investment, larger markets, technology transfer, new jobs.
If global demand for a country’s products suddenly falls, what could happen to its exports?
They may decrease.
What do we call the knowledge, skills and abilities that people contribute to an economy?
Human capital.
What indicator measures the total monetary value of final goods and services produced within a country’s borders?
GDP
What term describes the difference between the value of a country’s exports and imports?
Trade balance
Name one major economic challenge that globalization can create for a country.
International competition, dependence on global markets, economic shocks.
If a country buys more goods and services from other countries than it sells to them, what does it have?
Trade deficit.
What type of investment can bring capital, technology and management experience from another country?
Foreign direct investment.
What indicator is calculated by dividing a country’s GDP by its population and is useful for comparing economies of different sizes?
GDP per capita.
What term describes the value of one country’s currency compared with another country’s currency?
Exchange rate
Through which major economic activities do countries become interconnected with each other? Name at least two.
Trade and investment. Technology, financial markets, supply chains.
If a global economic crisis reduces demand for a country’s exports, what could happen to domestic production?
It may decrease.
Why doesn’t a high GDP necessarily mean that everyone in a country has a high standard of living?
GDP doesn’t measure everything about well-being.