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Economics & Gov't
Vocabulary - Trade, Economic Growth and Government Systems in SW Asia
Term | Definition |
---|---|
Voluntary Trade | when different countries choose to engage in the exchange of goods with one another. |
Specialization | when countries choose to specialize in what they do best, and then they trade for the goods and services another country produces more efficiently. |
Interdependence | depending, or relying, on each other |
Opportunity Cost | the value of what is given up when one choice is made over another |
Trade barriers | natural or man-made obstacles to voluntary trade |
Tariff | a tax placed on imported goods |
Quota | a limit on the amount of a good that can be imported into a country |
Embargo | when nations refuse to trade with a country at all |
Currency exchange | when money from one country is converted into the currency of another country |
Exchange rate | what the currency of a nation is worth in terms of another country's currency |
OPEC | Organization of the Petroleum Exporting Countries |
Gross domestic product (GDP) | the total value of all goods and services produced by a country in one year |
Natural resources | raw materials from nature (land) |
Capital goods | man-made materials ( factories, machines, and technology) |
Human capital | skills, education, and experiences of workers |
Entrepreneur | a person who starts a new business |
Literacy rate | the percentage of adults who can read and write |
Autocracy | 1 person possesses unlimited power and citizens have limited role in government |
Democracy | supreme power is vested in the people and exercised by them directly or indirectly through a system of representation involving free elections |
Parliamentary | citizens elect members of Parliament, and then the members select the leader |
Presidential | system of government in which the leader is constitutionally independent of the legislature |
Prime minister | the chief executive of the government |
President | the head of state |