| A | B |
|---|
| Business Cycle | Steps include: expansion, peak, contraction, trough |
| Expansion/Recovery | Part of the business cycle where the economy starts to grow again |
| Peak/Prosperity | Part of the business cycle at which there is the strongest point of economic growth |
| Contraction/Recession | Part of the business cycle in which the economy slows to two successive quarters of no growth |
| two successive quarters of no growth | two successive quarters of no growth |
| Trough/Depression | Severe economic downturn, not part of the normal business cycle |
| GDP-Gross Domestic Product | Total value of goods and services produced by a nation |
| CPI-Consumer Price Index | Prices of goods and services from the shopping cart of a typical urban consumer |
| Standard of Living | A standard measuring prosperity and wealth |
| National Debt | The amount that a nation owes when expenditures exceed revenues |
| Government Regularions | Include environmental protection, workplace safety, consumer protection |
| Environmental protection | Efforts to protect air, water, soil, plant and wildlife |
| Workplace safety | Efforts to protect workers through government agencies such as |
| Labor disputes | Conflicts between workers represented by unions and management |
| Affirmative action | Government programs to address discrimination |
| Population shifts | The U.S. population is shifting from northern and midwest to south and west |
| Migration | Movement of populations |
| Immigration | Movement of people from foreign nations into our nation |
| Sunbelt states | States of the southern and western U.S. that are growing in population and economic opportunity |
| Frost belt or Rustbelt states | States of the northern and middle U.S. that are losing population and economic opportunity |
| Service Industries | Include home repairs, entertainment |
| Silicon Valley | Region of California which specializes in computer technologies |
| Research Triangle Park | Region of N.C.(Raleigh, Durham, Chapel Hill) which specializes in research & technology |
| Technological Advances | Include computerization, robotics, |
| Microsoft Anti-trust Case | Case in which a federal court ruled that Microsoft Corporation is a monopoly |
| War and Homeland Security | Challenges facing our nation after the attack of September 11, 2001 |
| Operation Iraqi Freedom | Official name for the current Iraqi military action. |
| Patriot Act | Legislation enacted in 2001 expanding the power of law enforcement |
| Downsizing | When businesses cut their workforce |
| N.C.'s Furniture Industry | Example of industry affected by export of jobs to foreign countries |
| N.C.'s Textile Industry | Example of industry affected by export of jobs to foreign countries |
| Global interdependence | The inability of any nation to be totally self-sufficient |
| Globalization | Political and economic interdependence of nations |
| Foreign trade | International trade among nations |
| Exchange rate | Price at which one country's money is exchanged for another country's money |
| Comparative advantage | When a country can produce a product cheaper than other countries |
| Treaty | Formal agreement between countries |
| Protective tariffs | Tariff guarding domestic businesses from foreign competition |
| Tariffs | Tax on imports |
| Unfavorable balance of trade | When the value of a nation's imports is higher than the value of its exports |
| Favorable balance of trade | When the value of a nation's exports is higher than the value of its imports |
| International Economic Organizations | Examples: NAFTA, EU, WTO |
| NAFTA-North American Free Trade | Trade agreement among Canada, the United States, and Mexico |
| EU - European Union | Confederation of 25 European countries that cooperate politically and economically |
| WTO-World Trade Organization | An international body that oversees trade among nations |
| Multinational conglomerate | A large business that has diverse operations and offices in many nations |
| International Trade | Trade between nations expressed in terms of exports and imports |
| United Nations | International organization of member nations dedicated to the peaceful resolutions |
| Developed countries | Nation with a strong economy (industrial, service, information economies) |
| Developing coutries | Nation with a weak economy (subsistence agriculture, pre-industrial) |
| Free Trade | International trade with little or no government regulation |
| Foreign Aid | Donations of assistance to foreign countries |
| IMF-International Monetary Fund | International organization that funds economic projects and offers expertise to developed countries |
| World Bank | International monetary organization offering loans and technical assistance to developing countries |
| FED-Federal Reserve System | The central bank of the United States which serves as banker's bank. |
| Monetary Policy | Government policies to make money more or less available for borrowing |
| Loose (Easy) money policy | When money is more available for borrowing and investment |
| Tight money policy | When money is less available for borrowing and investment |
| Reserve requirement | Tool of monetary policy; the amount the Federal Reserve requires banks to keep on hand |
| Discount Rate | Tool of monetary policy; the interest rate the Federal Reserve charges to loan money |
| Interest Rates | The rate people receive when they lend money or allow someone else to borrow money |
| FMOA-Federal Open Market Operations | A 12 member policy-making group within the Federal Reserve |
| Fiscal Policy | Government spending and taxation to foster economic growth |
| Government spending | U.S priorities include Health and Human Services, Social Security, and |
| Revenue | Income for the government |
| Taxation | The chief way government raises the money it spends on the country |
| Progressive Tax | Tax rates rise as income rises |
| Regressive Tax | Tax that takes a higher percentage of income as income decreases |
| Proportional Tax | Taxing all members of a group at the same rate |
| Personal Income Tax | Tax on individual earnings. The income tax is a progressive tax. |
| Sales Tax | Tax charged on the sale of goods and services. The sales tax is a regressive tax |
| Excise Tax | Tax charged on a specific item such as gasoline, cigarette, or alcohol |
| Scarcity | Limited resources to fulfill unlimited wants and needs |
| Clean Air and Water Act | 1970 Congressional legislation that established the |
| Inflation | Sharp rise in prices |
| Recession | Two successive quarters of decline in economic productivity |
| Depression | Severe economic slump, characterized by high unemployment |
| Cuban Economic Embargo | U.S. decision to forbid trade with the government of Fidel Castro |
| Building codes | Local laws regulating the safety of buildings |
| Zoning Laws | Laws that limit land use within certain areas |
| NIMBY-Not in My Back Yard | View of citizens that public needs like prisons and waste disposal |
