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CIVICS VOCABULARY 1
36 VOCABULARY WORDS
Term | Definition |
---|---|
open economy | an economy in which economic activities occur between the country and the international community |
depression | a time in which unemployment is very high, consumer spending is low, and business output is sharply reduced such as what occurred in the United States in the 1930's |
gross domestic product (GDP) | the sum of all goods and services produced in a country during a year |
entrepreneur | an individual who risks his or her wealth, time, and effort to develop for profit in innovaetive products or ways of doing something |
economic expansion | this occurs when an economy is growing and people are spending more money |
unemployment | measured as the percentage of the population that wants to work but is unable to find jobs |
standard of living | refers to the level of wealth and material comfort that people have available for them |
budget deficit | when a nation spends more than it takes in from taxes |
recession | a decline in production, employment, and income |
economic contraction | occurs when spending declines |
business | an occupation, profession or trade to earn a profit by providing products that satisfy people's needs |
product | anything that is made to satisfy a want or a need |
profit | the difference between what it costs to make and sell a product and what customers pay for it |
non-profit organizations | organizations that are not in the business of earning profits although they provide goods or services and may engage in fund raising (Examples: public radio, or charities |
stakeholders | those who have an interest in the success and outcome of a business |
economics | the study of how resources are distributed for the production of goods and services within a social system |
natural resources | the naturally occurring resources that are naturally a part of our natural planet which are directed toward production--including land, water, wildlife, vegetation, air, climate, sunshine, mineral deposits, and soil nutrients. |
financial resources/capital | funds (money) used to acquire natural and human resources needed to provide products |
economic system | the systems by which a particular society distributes its resources to produce goods and services |
Communism | a society in which the people, regardless of class, own all the nation's resources. |
Socialism | an economic system in which the government owns and operates basic industries ( postal service, telephone, utilities transportation, health care banking) but individuals own most businesses |
Capitalism/Free Enterprise | an economic system in which individuals own and operate the majority of businesses that provide goods and services |
free market system | all economic decisions are made without government intervention |
mixed economies | elements from more that one economic system |
demand | the number of goods and services that consumers are willing to buy at different prices, at a specific time |
supply | the number of products that businesses are willing to sell at different prices at a specific time |
equilibrium price | the price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to pay a specific point in time |
competition | the rivalry among business for consumer dollars is another vital element in free enterprise |
pure competition | exists when there are many businesses selling one standard product |
monopolistic competition | exists when there are fewer businesses that in a pure competition environment and the difference among the goods they sell are small |
oligopoly | exists when there are very few businesses selling a product |
monopoly | when there is one business providing a product in a given market |