| A | B |
|---|
| import | to bring goods/services into a country from abroad |
| export | to send goods/services to another country for sale |
| cottage industry | merchants hired people to work from home instead of relying on artisans or guild members. |
| market economy | system where items are sold for prices set by the open market; supply and demand |
| mercantilism | sconomic system where the mother country forms colonies in order to control natural resources. These natural resources are used for the benefit of the mother country. |
| capitalism | economic system with less governmental control; based on investing money for profit; individuals can own businesses; driven by competition and choice. |
| Adam Smith | Scottish economist who challanged government control of the economy; proposed the ideas of free trade and competition |
| currency | Money in any form when in actual use as a medium of exchange, especially circulating paper money |
