Chapter 6 Flashcards
(27 cards)
People choose freely to buy or sell
Market Economy
system that lets competition among businesses determine the price of items
Free enterprise
Privately owned property like businesses, industry, and other resources
capitalism
government decides what to produce where to make and the price
command economy
government controls all means of production
communism
total value of goods and services in a country
GNP (gross national product)
goods and services created in a country
GDP (gross domestic product)
manufacturing based on machine power becomes wide spread in an area
industrialization
the percentage of people who can read and write
literacy rate
high industrialization, and their people enjoy high standard of living
developed countries
systems of roads, ports, and other facilities needed by a modern economy
infrastructure
less productive economically, and have lower standards of living.
developing countries
the goods a nation brings in from different nations
Import
The goods a country sells or trades with another nation
Export
the ability to produce something at a lower price than another country can
Comparative advantage
the loss of potential gain from other alternatives when one alternative is chosen.
Opportunity costs
tax on imports. The goal is to make the price of imported goods higher than those produced at home
Tariff
a limit placed on the amount of a particular good that enters a country
Quota
a payment or other benefit given by a government to help a domestic producer
Subsidy
use of tactics that make imported goods more expensive than domestic goods
Protectionism
boundaries that follow a feature of the landscape are called
natural boundaries
Boundaries that are based on cultural traits such as religion and language
cultural boundaries
boundaries that are based on regular geometric boundaries
geometric boundaries
feeling pride and loyalty to one’s nation or culture group
nationalism
