Lesson 13.1

Key Terms

Global Economics: the study of how the economies in all parts of the world operate
Economic Interdependence: the relationship between two or more countries dependent on one another for goods or services
Macroeconomics: the study of the big economic picture through various economic indicators​​​​​​​
Microeconomics: the study of behavior in small economic units like businesses and individuals​​​​​​​
Inflation: the persistent rise in the cost of goods and services over time​​​​​​​
Deflation: the general reduction of prices in an economy over time​​​​​​​
Gross Domestic Product (GDP): the total market value of all finished goods and services produced in a country in a given period of time​​​​​​​
Economic Indicators: key statistics used to analyze a country‘s economy​​​​​​​
Standard of Living: the level of wealth, comfort, material goods, and necessities available to a group of people​​​​​​​
Developed Country: one with a high level of economic growth, industrialization, and a higher standard of living​​​​​​​
Developing Country: one with less economic development, an agriculture-based economy, less industrialization, high population, and high level of unemployment

Lesson 13.2

Key Terms

Economic System: an organized way in which a nation or country manages all their buying, selling, and production
Socialism: economic and political theory promoting collective or government ownership and control of the means of production and distribution of goods
Capitalism: economic and political system in which trade and industry are controlled by private owners for profit
Monopoly: an industry or commodity that‘s dominated by one corporation that manipulates prices; an extreme result of free-market capitalism without government regulation
Specialization: when a nation or individual concentrates its efforts in producing a limited variety of goods or services

Lesson 13.3

Key Terms

Supply and Demand: how the availability of a product or service, and how much it‘s desired by consumers, affects the price
Law of Supply and Demand: an economic theory that explains the interaction between the sellers of a resource and the buyers for that resource​​​​​​​
Equilibrium: the state in which market supply and demand match each other, resulting in price stability​​​​​​​
Profit Motive: the desire to make money as the result of a business venture​​​​​​​
Competition: when businesses compete for a share of profit​​​​​​​
Business Cycle: describes the rise and fall in production output; it is generally divided into four stages: expansion, peak (prosperity), contraction (recession), and trough

Lesson 13.4

Key Terms

Global Trade: the exchange of capital, goods, and services between different countries
Exports: resources, materials, and goods a country produces and sells to another country​​​​​​​
Imports: resources, materials, and goods a country buys from another country​​​​​​​
Protectionism: governmental actions that restrict trade with the intent to protect local businesses from foreign competition​​​​​​​
Tariff: a tax imposed on the goods and services imported from another country​​​​​​​
Product Standards: criteria and specifications related to the health, safety, and compatibility of goods and services
Subsidy: payment from the government to producers to lower their cost to produce or increase the quantity produced​​​​​​​
Quota: a government-imposed restriction on the number or value of imported or exported items
Embargo: a government order that restricts or prohibits trade​​​​​​​
Scarcity: limited resources and an unlimited demand by a population​​​​​​​
Rationing: a limit placed on the distribution of resources in high demand but in short supply