| A | B |
|---|
| Economy | The organized way a nation provides for the needs and wants of its people |
| Resources | All the things used in producing goods & services |
| Factors of Production | Comprised of 4 resources: land, labor, capital and entrepreneurship |
| Infrastructure | Physical development of a country |
| Entrepreneurship | Skills of people who are willing to invest their time and money to run a business |
| Scarcity | The difference between needs and wants and available resources |
| Traditional Economy | Economic system where Habits, traditions and rituals answer basic questions of what, how & from whom |
| Market Economy | No government involvement in economic decisions |
| Command Economy | Country’s government makes all economic decisions |
| Capitalism | Political & economic philosophy characterized by marketplace competition and private ownership of business **same as free enterprise system** |
| Socialism | System with democratic political institutions & increased government involvement in the economy **main goal to meet basic needs of all** |
| Communism | Social, political & economic philosophy in which government, usually authoritarian, controls the factors of production **no private ownership of property or capital** |
| Imports | Goods & services purchases from other countries |
| Exports | Goods and services sold to other countries |
| Balance of Trade | The difference in value between exports and imports |
| Free Trade | Commercial exchange between nations that is conducted on free market principles, without regulations |
| Tariff | Tax on imports **also called: duty** |
| Quota | Limits either the quantity or monetary value of a product that may be imported |
| Embargo | A total ban on specific goods coming into and leaving a country |
| International Trade | The exchange of goods and services among nations |
| Trade deficit | The exchange of goods and services among nations |
| Protectionism | A government’s establishment of economic policies that systematically restrict imports in order to protect domestic industries |
| World Trade Organization | Global coalition of nations that make the rules governing international trade |
| North American Free Trade Agreement | International trade agreement among US. Canada & Mexico. |
