Economic Vocabulary Terms
What is Economics?
• Social science that seeks to describe the
factors which determine the production,
distribution and consumption of goods and
services.
• Explains how and what and why something is
produced, how is it sold, who and what is
bought
Collective Farming
• Communal farming in which several
farmers run their holdings as a joint
enterprise
Command Economy
• A system of resource management in
which decisions about production and
distribution of goods and services are
made by a central authority (the
government)
Commodity
• People with common interests living
in a particular area
Cottage Industry
• A business that employs workers in
their homes
Trade Deficit
• Spending more on trade imports
than making on exports
E-Commerce
• Buying and selling on the internet
Free Enterprise
• A system in which private
individuals or groups have the right
to own property or businesses and
make a profit with limited
government interference
Free Trade Zone
•An area of a country in which
trade restrictions do no apply
Infrastructure
• Public services or systems such as
power, water and sewage,
transportation and communication
networks, and schools and health
care facilities.
Market Economy
• An economic system based on free
enterprise, in which businesses are
privately owned and production
and prices are determined by
supply and demand
Industrialization
• The process in which a society or
country transforms itself from a
primarily agricultural society into
one based on the manufacturing of
goods and service
Tariff
•A tax on imports
Capitalism
• A system in which factors of
production are privately owned
Mixed Economy
• A system of resource management
in which the government supports
and regulates enterprise through
decisions that affect the
marketplace
Regulates
•To govern or direct according to
rule
More Developed Counties
• A country that has highly developed
and advanced technological
infrastructure
Less Developed Countries
• A country that exhibits the lowest
indicators of socioeconomic
development
Newly Industrialized Countries
• A country that has begun
transitioning from primarily
agricultural to primarily
manufacturing and industrial
activity
• Mexico, China
Gross Domestic Product (GDP)
• The value of goods and services
produced within a country in one
year
• Produced within the countries borders
Gross National Product (GNP)
• The value of goods and services
produced by a country in one year
• Goods and service produced outside the countries
borders
Natural Resources
• Materials or substances such as
minerals, forests, water, and fertile
land that occur in nature and can be
used for economic gain.
Trade Surplus
• Earning more money from export
sales than spending for imports
Traditional Economy
• A system in which tradition and
customs control all economic
activity
• EX) Amish