3rd Six Weeks Flashcards
(35 cards)
A system that relies on customs, history, and time-honored beliefs.
Traditional Economic System
A system where the laws of supply and demand direct the production of goods and services.
Market Economic System
An economic system in which the government makes economic decisions rather businessness and consumers.
Centrally Planned Economic System
A system that combines characteristics of market, command and traditional economies.
Mixed Economic System
The amount of goods and services that are available for people to buy compared to the amount of goods and services that people want to buy.
Supply and Demand
Anything of value that people own.
Private Property
The monetary reward business owners receive in return for taking the risk involved in starting a business.
Profit Motive
The split between the capitalist class, which own the business, and the working class.
Two-Class System
The rivalry between companies selling similar products and services.
Competition
The amount of money that a company actually receives during a specific period.
Revenue
Any costs incurred in the ordinary course of business.
Expense
The difference between sales and cost of goods sold.
Gross Profit
What a nation has when it’s the only source of a particular product or it can make more of a product using the same amount of or fewer resources than other countries.
Absolute Advantage
What a nation has when a it can produce a product at a lower opportunity cost compared to another nation.
Comparative Advantage
Determined by subtracting the value of its imports from the value of its exports.
Balance of Trade
When a country sells more products than it buys.
Trade Surplus
When a country buys more than it sells.
Trade Deficit
The difference, over a period of time, between the total flow coming into a country and the total flow going out.
Balance of Payments
The exchange of goods and services between countries.
International Trade
Also known as internal trade or home trade, is the exchange of goods within the boundaries of a country.
Domestic Trade
Buying goods and services from other countries.
Import
Selling products to other nations.
Export
The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.
Economy
The item actually being sold.
Product
