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Economics I
Basic Economics Terms
Term | Definition |
---|---|
Mercantilism | A system in which a government controls all economic activity in a country and its colonies to make the government stronger and richer |
Capitalism | An economic system in which individuals and private businesses run most industries |
Inflation | A gradual increase in prices |
Want | a desire for goods and services, not necessarily accompanied by the power to satisfy them |
Need | an economic good or service that is basic to survival, such as food, clothing, and shelter |
Supply | the amount of goods and services that are available at a given time |
Demand | the amount of goods and services that consumers are willing and able to buy at a given time |
Balance of Trade | The difference in value between what a nation imports and exports over a period of time |
Subsidies | Grants of monies |
Joint | Stock Companies |
Opportunity Cost | the value of the next |
Scarcity | a condition of limited resources and unlimited wants by people |
Export | goods or services that a country sells and sends to other countries |
Import | goods or services that a country brings in or purchases from another country |