Unit 1 - Economy and Government Vocabulary

The amount of goods and services produced compared to the number of people.

All economic decisions are made by the government.

Creative, original thinkers who are willing to take risks to create new businesses and products.  

The exchange of goods and services between countries.

Both parties in the transaction see that they will be able to gain something from the exchange.

A business that has the legal right to exchange one currency for another. 

A government that promotes the establishment of a classless society.

The percentage of people in a country that can read or write.

The factories, machines, and technology that people use to make products to sell.

The knowledge and skills that make it possible for workers to earn a living producing goods or services.

Quality of life and quantity of goods and services available to people in a country.

The value of all the final goods and services produced within a nation in a given year.

A political system in which the people play a much greater role in the government.

Anything that slows down or prevents one country from exchanging goods with another.

All economic decisions are based on customs, traditions, & beliefs of the past.

A type of government where a president is chosen to be the leader.

Economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place. 

A tax placed on goods when they are brought into one country from another country.

A way of limiting the amount of foreign goods that can come into a country.

Having characteristics of two types of economic systems. 

A trade barrier in which one country announces that it will no longer trade with another country. 

Citizens elect representatives to a legislative and the legislators elect the leader.  

A government in which the ruler has absolute power.

Gifts of Nature; something that is in or supplied by our natural environment and can be consumed or used by people

The products a country makes best and that are in demand on the world market.