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Economics

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Term
Definition
Economics   the study of how people seek to satisfy their needs and wants by making choices  
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Globalization   Idea that the world is becoming increasingly interconnected on a global scale such that smaller scales of political and economic life are becoming obsolete  
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Industrial Revolution   rapid economic & social changes in manufacturing that resulted after the introduction of the factory system to the textile industry  
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Postindustrial   Economy with less emphasis on heavy manufacturing and more emphasis on services and technology  
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Commodities   Goods produced for sale  
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Trade Deficit   Spending more money on imports than earning from exports  
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Trade Surplus   Earning more money on export sales than spending on imports  
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Outsourcing   Practice of sending out industrial processes to outside companies, especially to foreign countries  
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Service Industry   Business that provides assistance instead of making a good  
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Developing Countries   Country in the process of becoming industrialized  
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Renewable Resource   Any resource replaced by natural processes more quickly than it is consumed  
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Exchange Rate   the value of one nation's currency in terms of another nation's currency  
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Capital Resources   the tools, equipment, and buildings that are used to produce goods and services  
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Gross Domestic Product (GDP)   Total value of goods and services produced within the borders of a country during a specific time period, usually one year  
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Scarcity   not having enough resources to produce all of the things we would like to have therefore people must make choices.  
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Tariff   Tax on imported goods and services  
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Specialization   a situation in which people produce a narrower range of goods and services at they consume. it increases productivity and requires trade and interdependence  
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