1. Economic Terms Copy for your notes!

2. Economy System by which products are produced, distributed, and consumed. Think: MONEY!!!

3. imports products brought into one country from another to sell. Think Import = INport

4. exports products from one country sent out to another to sell. Think of EXPORT- EXIT http://atlas.media.mit.edu/profile/country/usa/

5. tariffs a fee or tax that a government charges for goods entering the country A government will impose tariffs to keep people from buying goods that are imported.

6. Types of products: Domestic: Products produced and sold in the same country. International/Foreign: Products made in one country and sold in another.

7. Capital Is money and goods used to help people make or do things. You need capital to run a business.

8. Capital continued…. 1. Financial assets or the financial value of assets, such as cash. 2. The factories, machinery and equipment owned by a business and used in production. “Capital” can mean many things. Its specific definition depends on the context in which it is used. In general, it refers to financial resources available for use. Companies and societies with more capital are better off than those with less capital.

9. Entrepreneurship Is the act of running a business and taking on the risks of that business. Usually describes individual or small businesses.

10. barter system goods and services are exchanged for other goods and services-no money is used Basically, people are trading.

11. Developing vs. Developed Country Developing Country: a country who’s economy is based on agriculture and is trying to become industrialized. Also known as an emerging market. Developed Country: a country who’s economy is based on industry and manufacturing. These countries do not need assistance from others for survival.

12. Developed & Developing Countries

13. supply and demand supply- how much of something there is. demand- how many people want an item.

14. supply and demand (cont.) If supply is higher than demand, the price goes down. If demand is higher than supply, the price goes up.

15. inflation A prolonged rise in prices; you get less for your money than you used to get.

16. Scarcity Lack of a resource. This can affect supply and demand. HOW????

17. Opportunity Cost The opportunity cost of something is what you give up to make it or buy it.

18. recession a downturn in business activity and economic prosperity; not as severe as a depression 6 Months straight of negative growth in a country’s GDP.

19. depression a severe recession with high unemployment (jobless rate) and low levels of trade and investment 1 year (4 quarters) of negative growth in a country’s GDP.

20. Globalization The process of countries being involved in international trade. Globalization increases the ties among the world’s economies.

21. Memory Cues Create a memory cue for each of the economic terms. Use a graphic, word, or phrase to help you remember what each term means. Be Creative!!! Ex. Exports= EXIT