| A | B |
|---|
| capital goods | Tools or machines needed to run a business |
| consumer | People who buy products or services |
| profit | Money that is left over after all expenses are paid |
| money | items given in exchange for goods and services |
| producers | People who make goods and services |
| Free Enterprise | When people can start businesses to compete for profits |
| Goods | Items made for people to buy |
| incentive | Desire to create a business |
| labor | The work people put in to create a good or service |
| Foreign Trade | Goods or services are bought or sold between countries |
| Domestic Trade | Goods or services are bought or sold within the same country |
| Tax | Money paid to the government |
| capitalism | Private individuals own and control production |
| stock | Part ownership of a company |
| Share | The amount of stock you own in a company |
| dividend | Amount of money you receive from owning stock |
| barter | Economic system where people trade goods and services without money |
| incorporation | Selling stock in your company to other people |
| Socialism | Govt. controls some of the buying and selling of a product |
| Communism | Govt. controls all of the buying and selling of products |
| scarcity | choices countries make to satisfy wants with limited resources |
| inflation | price of goods are increasing |
| opportunity cost | is the choices you make when you buy something |
| trade | exchange of goods between nations. |
| interdependence | countries depend on other countries for goods |
| Fixed cost | Are those cost a company has to pay even if it is not operating. |
| laissez-faire | Government should not interfere in the economy (let do). |
| gross national product | Total value of all goods and services produced by a country in one year/ |
| entrepreneur | People who risk their capital in creating a business. |
| operating cost | Are those that occur when running a company, such as paying wages and shipping. |
| tariffs | taxes imposed on imported goods |
| quotas | the maximum number of people/products that may be admitted to an institution or country. |
| protectionism | efforts to restrict imports in order to protect domestic industries |
| credit | the purchase of goods /services in the present with the promise to pay for them in the future. |
| specialization | the concentration of production on fewer kinds of goods/services than are consumed. |
| mixed economy | combines features of more than one of the traditional command and market. |
| infrastructure | These are things the government does could help businesses, for examples: public building, road, bridges etc.. |
| market economy | decision production and consumption are made by individuals acting as buyers and sellers. |
| traditional economy | decision on production/consumption are based on customs, beliefs and rituals and habits. |
| recession | a down turn in the business cycle during which the GDP does not grow for at least 6 months. |
| command economy | an economic system in which importatn economic decisions are made by the government. |
| import | things that are brought into the country from another country to sell. |
| export | things being sent from the home country to be sold in another country. |
| trade deficit | country buys more than it sells to other countries |
| subsidy | is a form of financial or in kind support from the government. |
| capital | a factor of production that is another name for money. |
