| A | B |
|---|
| ABSOLUTE ADVANTAGE | ONE COUNTRY PRODUCES A PRODUCT AT A LOWER COST |
| COMMAND ECONOMY | A CENTRAL GOVERNMENT MAKES ALL DECISIONS ON PRODUCTION AND CONSUMPTION |
| COMPARATIVE ADVANTAGE | ABILITY TO PRODUCE GOODS/SERVICES AT A LOWER OPPORTUNITY COST THAN OTHERS |
| EXPORTS | GOODS SOLD TO OTHER COUNTRIES |
| IMPORTS | GOODS PURCHASED FROM OTHER COUNTRIES |
| INFRASTRUCTURE | EXAMPLES: PUBLIC BUILDINGS, ROADS, BRIDGES, ETC. |
| MARKET ECONOMY | DECISIONS ON PRODUCTION AND CONSUMPTION ARE MADE BY INDIVIDUALS ACTING AS BUYERS AND SELLERS |
| MIXED ECONOMY | COMBINES FEATURES OF MORE THAN ONE OF THE TRADITIONAL, COMMAND, AND MARKET SYSTEMS |
| OPPORTUNITY COST | THE VALUE OF THE NEXT BEST ALTERNATIVE GIVEN UP WHEN A CHOICE IS MADE |
| PRODUCTIVE RESOURCES | RESOURCES USED TO MAKE GOODS/SERVICES; EXAMPLE: NATURAL RESOURCES, HUMAN RESOURCES, AND CAPITAL GOODS |
| SPECIALIZATION | THE CONCENTRATION OF PRODUCTION ON FEWER KINDS OF GOODS/SERVICES THAN ARE CONSUMED |
| STANDARD OF LIVING | A PERONS'/GROUP'S LEVEL OF MATERIAL WELL-BEING; MEASURED BY EDUCATION, HOUSING, HEALTH CARE, NUTRITION |
| TRADITIONAL ECONOMY | DECISIONS ON PRODUCTION/CONSUMPTION ARE BASED ON CUSTOMS, BELIEFS, RITUALS, AND HABITS |
| ANTITRUST LEGISLATION | LAWS PASSED TO PREVENT NEW MONOPOLIES AND BREAK UP EXISTING ONES |
| CIRCULAR FLOW MODEL | A DIAGRAM THAT SHOWS THE FLOW OF ECONOMIC ACTIVITY AMONG SECTORS OF THE ECONOMY |
| CREDIT | THE PURCHASE OF GOODS/SERVICES IN THE PRESENT WITH THE PROMISE TO PAY FOR THEM IN THE FUTURE |
| FEDERAL RESERVE SYSTEM | A NATIONAL BANKING SYSTEM, CREATED IN 1913, THAT CONTROLS THE U.S. MONEY SUPPLY AND AVAILABILITY OF CREDIT |
| INTEREST RATES | THE PERCENTAGE OF A LOAN THAT MUST BE REPAID IN ADDITION TO PAYING THE PRINCIPLE. |
| INTERNATIONAL TRADE | THE EXCHANGE OF GOODS BETWEEN COUNTRIES |
| MONETARY POLICY | POLICY THAT INVOLVES CHANGING THE AMOUNT OF MONEY IN CIRCULATION BY CHANGING THE INTEREST RATES |
| MONEY | ANYTHING USED AS A MEDIUM OF EXCHANGE |
| PROTECTIONISM | EFFORTS TO RESTRICT IMPORTS IN ORDER TO PROTECT DOMESTIC INDUSTRIES |
| QUOTAS | THE MAXIMUM NUMBER OF PEOPLE/PRODUCTS THAT MAY BE ADMITTED TO AN INSTITUTION OR COUNTRY |
| RECESSION | A DOWNTURN IN THE BUSINESS CYCLE DURING WHICH THE GDP (GROSS DOMESTIC PRODUCT) DOES NOT GROW FOR AT LEAST 6 MONTHS |
| TARIFFS | TAXES IMPOSED ON IMPORTED GOODS |
| DOMESTIC | MADE/DONE AT HOME; NOT FOREIGN |
