| A | B |
|---|
| capital | Economic term referring to goods that are used to produce another good or service |
| comparative advantage | A situation in which a country, region, company, or individual has the unique ability to produce a good or service at a lower cost than anybody else, giving them an advantage over other competitors. |
| developed countries | Any country that is wealthy, indsutrialized, technologically advanced, and large segments of their population enjoys a relatively high standard of living. |
| developing countries | Any country that is poor and whose citizens are mostly agricultural workers, but is attempting to become more advanced socially and economically |
| exports | Goods that are produced in one country but sold to other countries. |
| free trade agreement | A formal agreement or treaty between two or more countries that reduces/eliminates tariffs in order to promote trade between those countries. |
| imports | Any goods that a country brings into its economy from other countries. |
| industrialization | The process of a society transitioning to an economy where goods and services are mass produced, using machines and automation. |
| infrastructure | A country’s structures, facilities, systems, and/or networks necessary for the functioning of its society (e.g. – Roads, railroads, waterways, power lines, water/sewage pipes and sanitation plants, garbage/recycling, schools, postal service, communications systems) |
| interdependence | People and/or societies relying on each other for goods, services, and ideas |
| globalization | The process of increasingly greater connection of different parts of the world resulting in the expansion of cultural, economic, and political ties to one another (interdependence). |
| Gross National Product (GNP) | An economic statistic that includes GDP, plus any income earned by residents or companies overseas. |
| Gross Domestic Product (GDP) | The total value of goods produced and services provided in a country during one year. |
| life expectancy | The average number of years a person can be expected to live in a country/region. |
| literacy rate | The percentage of a country/region’s adult population (15 +), that can read/write at a functional level. |
| infant mortality | The average number of infant deaths(0-12 mos.), per one thousand live births that occur in a country each year. |
| quality-of-life | A way to describe how well a population is living based upon a set of statistics designed to measure societal levels of wealth, health, education, technological capacity, social mobility, and political stability. |
| market economy | Economic system in which the prices of goods and services are determined largely by the principles of supply and demand. |
| command economy | Economic system where the government makes all decisions regarding production, investment, prices and income in a country’s economy. |
| mixed economy | An economic system that allows for the operation of both publicly and privately owned companies/enterprises. |
| primary economy | Economic activities involving the gathering of natural resources: Farming, fishing, logging, mining, drilling, etc |
| secondary economy | Activities involving the processing of raw materials into finished goods (i.e. – manufacturing). |
| subsistence economy | An economic system in which only enough goods are produced – based on available technologies – food is grown, hunted or gathered to provide for a small population’s needs (e.g. – a village or a tribe). |
| tariffs | A type of tax that is placed on imports before they may be distributed into the economy. |
| tertiary economy | Economic activities having to do with providing services to businesses and consumers. Dry cleaners, real estate agents and loan officers fall into the category of tertiary economic sector workers. Transportation, banking, tourism and retail stores are all part of the tertiary economic sector. |
| quotas | Minimums or limits that are placed on the amount of goods/services that may be produced/provided, or imported into an economy |
| quaternary economy | Activities involving the creation and management of intellectual property in an economy such as government, research, cultural programs, Information Technology (IT), education and libraries. |
| embargo | To outlaw the trade of certain goods and/or services with another country, or countries. |
