Economy Concepts

Front 1

Supply

Back 1

Schedule of quantities offered for sale at all posible prices in amarket.

Ex. Cellphones

Front 2

Demand

Back 2

Combination of desire, ability, and willingness to buy a product.

Ex. People want the iPhone 6.

Front 3

Break Even Point

Back 3

Production needed if the firm is to recover its costs; production level where total cost equals total revenue.

Ex. Gaining the costs of making a cake.

Front 4

Factors of Production

Back 4

Productive resources that make up the four categories of land, capital, labor, and entrepreneurship.

Ex. A factory on a land in a city.

Front 5

Economic Cycle

Back 5

The natural fluctuation of the economy between periods ofexpansion (growth) and contraction (recession).

Ex. Ice Cream sales on winter and in summer.

Front 6

Welfare State

Back 6

Program whereby a government or private agency programs thatprovide general economic and social assistance to needy individuals.

Ex. Nordic Countries

Front 7

Neoliberalism

Back 7

An approach to economics and social studies in which control ofeconomic factors is shifted from the public sector to the private sector. Drawing upon principles of neoclassical economics, neoliberalism suggests that governments reduce deficit spending, limit subsidies, reform tax law to broaden the tax base, remove fixed exchange rates, open up markets to trade by limiting protectionism, privatize state-run businesses, allow private property and back deregulation.

Ex. Government and banks.

Front 8

Globalization

Back 8

The tendency of investment funds and businessesbeyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. Globalization has had the effect of markedly increasing not only international trade, but also cultural exchange.

Ex. Mc Donalds'

Front 9

Regionalism

Back 9

Institutional arrangements designed to facilitate the free flow ofgoods and services and to coordinate foreign economic policies between countries in the same geographic region.

Ex. NAFTA

Front 10

Trade Embargo

Back 10

Prohibition on the export or import of a product.

Ex. USA on Cuba

Front 11

Economic Integration

Back 11

An economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. The aim of economic integration is to reduce costs for both consumers and producers, as well as to increase trade between the countries taking part in the agreement.

Ex. European Union

Front 12

Free Trade Agreement

Back 12

Treaty (such as FTAA or NAFTA) between two or more countriesto establish a free trade area where commerce in goods and services can be conducted across their common borders, without tariffs or hindrances but (in contrast to a common market) capital or labor may not move freely.

Ex. NAFTA

Front 13

Quota

Back 13

Limit on the amount of a good that can be allowed into a country.

Ex. Limit the number of control remotes enetering the country.

Front 14

Tariff

Back 14

Tax placed on an imported product

Ex. Taxes on the chips.

Front 15

Inflation Rate

Back 15

Is the rate at which the general level of prices forservices is rising and, consequently, the purchasing power of currency is falling.

Ex. Inflation rate in Mexico.

Front 16

GDP

Back 16

It is the monetary value of all the finished goods and servicesproduced within a country's borders in a specific time period.

Ex. USA's big GDP.

Front 17

Overproduction

Back 17

Excess of supply over demand of products being offered to themarket.

Ex. Making more cars than the ones needed.