| A | B |
|---|
| Balance of trade | The difference in value over a period of time between a country's imports and exports. |
| Capital resources | man-made things we use to help us work, like factories, machines, and technologies |
| Capitalism | same as free enterprise |
| Credit | receiving a good or service now and paying for it later. |
| Depression | occurs when a recession (see definition of recession) fails to recover after an extended period of time. |
| European Union | 27 member nations work together for the economic good among themselves |
| Developed countries | have a great deal of manufacturing |
| Developing countries | have little or no manufacturing; usually rely on subsistence farming |
| Embargo | an action taking by a gov?t to prevent trading, buying, or selling with another country |
| Entrepreneur | a person who takes a risk starting a new business |
| Free Enterprise | freedom to start and operate your own business |
| Free trade zones | no tariffs between the countries in the zone |
| Gross Domestic Product (GDP) | when you get the total value of all the final goods and services produced in a country in one year |
| GDP per capita | taking the GDP and dividing it by the total number of people in the country |
| Globalization | the trade among countries |
| Human capital | the training of people in the workforce |
| Inflation | prices increase over time |
| Market economy | based on supply & demand and free enterprise |
| Monopoly | only one company provides a needed service |
| NAFTA | agreement among Canada, US, & Mexico to remove all trade barriers |
| Natural resources | products that come from the earth |
| Opportunity cost | the value of what you have to give up in order to get something else |
| Physical trade barriers | mountains, distance, weather, war |
| Recession | occurs when prices go so high that people either cannot or will not pay for the high prices. |
| revenue | income a business makes from the sale of goods and services |
| scarcity | limited supply of something |
| specialization | when a country is good at making one thing (usually) or more things |
| supply and demand | idea that when there is a great demand for goods that are in limited supply. |
| stock | an investment that a person makes in a corporation |
| quota | a trade barrier limiting how much can be imported |
| tariff | taxes on imports |
| trade barriers | anything that keeps countries from trade with each other |
