section 6 flash cards
(35 cards)
another type of economy
market economy
lets competition among businesses determine the price of products
free enterprise
free enterprise
capitalism
the government decides what to produce
command economy
economic and political system in which the government owns or controls almost all the means of production.
communism
the total value of goods and services that a country produces in a year.
gross national product
only goods ans services created within the country
gross domestic product
the process by which manufacturing based on machine power becomes widespread in an area
industrialization
the percentage of people who can read and write
literacy rate
the richest countries
developed countries
a system of roads ports and other facilities needed by a modern economy
infrastructure
the worlds poorer countries
developing countries
the goods a country 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 opportunity cost than another country can.
comparative advantage
use of tactics that make imported goods more expensive than domestic goods.
Protectionism
tax on imports. The goal is to make the price of imported goods higher than those produced at home.
Tariff
a payment or other benefit given by government to help a domestic producer.
Subsidy
A limit placed on the amount of a particular good that enters a country.
Quota
the process in which people grow plants and tame animals for their own use
domestication
growth in the proportion of people living in towns and cities
urbanization
huge urban areas that are the most important centers of economic power and wealth
world cities
city center dominated by large stores, offices, and buildings
central business district
clusters of large buildings away from the central business district of a city.
edge cities
