Eco Unit 3 Vocab

Front

Absolute advantage

Back

Given the same amount of resources, one country can produce more of a product or produce more efficiently than another country can.

Front

Business cycle

Back

An observable pattern in the fluctuations of economic activity experienced over time, as indicated by output, employment, and prices. Generally the fluctuations range from expansion to recession.

Front

Comparative advantage

Back

Given the same amount of resources, one country can produce a product with a lower opportunity cost than another country can.

Front

Corporation

Back

Business form that has many of the legal rights of an individual but are subject to more regulations.

Front

Expansion

Back

A period of rising GDP.

Front

Fiscal Policy

Back

Government spending and tax strategies to influence the economy.

Front

Foreign Exchange

Back

Converts the currency of one country into another.

Front

GDP per capita

Back

The dollar value of all final goods produced within a nation's borders during one year, divided by the population.

Front

Gross Domestic Product (GDP)

Back

The dollar value of all final goods produced within the U.S. borders during one year.

Front

Inflation

Back

An increase in the general level of prices over a period of time.