1. Economic Vocabulary Terms

2. 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

3. Collective Farming Communal farming in which several farmers run their holdings as a joint enterprise

4. 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)

5. Commodity People with common interests living in a particular area

6. Cottage Industry A business that employs workers in their homes

7. Trade Deficit Spending more on trade imports than making on exports

8. E-Commerce Buying and selling on the internet

9. 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

10. Free Trade Zone An area of a country in which trade restrictions do no apply

11. Infrastructure Public services or systems such as power, water and sewage, transportation and communication networks, and schools and health care facilities.

12. 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

13. 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

14. Tariff A tax on imports

15. Capitalism A system in which factors of production are privately owned

16. Mixed Economy A system of resource management in which the government supports and regulates enterprise through decisions that affect the marketplace

17. Regulates To govern or direct according to rule

18. More Developed Counties A country that has highly developed and advanced technological infrastructure

19. Less Developed Countries A country that exhibits the lowest indicators of socioeconomic development

20. Newly Industrialized Countries A country that has begun transitioning from primarily agricultural to primarily manufacturing and industrial activity Mexico, China

21. Gross Domestic Product (GDP) The value of goods and services produced within a country in one year Produced within the countries borders

22. 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

23. Natural Resources Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

24. Trade Surplus Earning more money from export sales than spending for imports

25. Traditional Economy A system in which tradition and customs control all economic activity EX) Amish