World History Economics Study Guide

Comprehensive question-and-answer flashcards covering core economics concepts, trade, resource types, and financial literacy terms from the study guide.

What is a period of slow economic decline called?

Recession

What term refers to goods brought into one country from another in trade?

Imports

What is it called when most of the world's countries take part in some form of international trade?

Globalization

What is defined as a rise in prices and a drop in the value of money?

Inflation

What are goods sent from one country to another in trade called?

Export

What is the system called where goods and services are traded directly for other goods and services?

Barter

What is a major negative effect of using credit cards?

Charging more than you can pay back

What is the fee charged for using someone else's money called?

Interest

What is the definition of debt?

The amount owed that is equal to the principal plus interest

What is the difference between scarcity and a shortage?

Scarcity means there are not enough resources, whereas shortage means that over time the demand of a good/service exceeds the quantity/availability, but it is temporary

How much influence does the government have in a market economy?

Little

What is the money leftover after paying all the costs of creating a good or service called?

Profit

What is a person who organizes and manages a business called?

Entrepreneur

Where are most stocks bought and sold?

In a stock exchange or the Stock Market

Why is international trade necessary for nations?

Because no nation produces all the goods it needs

What is the term for borrowing money to purchase goods and services?

Credit

What is a written document that describes an idea for a product or service and how it will make money?

Business Plan

What type of economic system does the U.S. have?

Mixed Economy

What is an economy called in which the government controls most economic activity?

Command economy

What are trade barriers used for?

To encourage consumers to buy products made in their country

What is the term for something lost when an economic choice is made?

Opportunity Cost

What must an individual buy to have part ownership in a company?

Stocks

What is the value of one currency expressed in a different currency called?

Exchange Rate

What subject is defined as the study of scarcity and the use of resources?

Economics

What happens to trading partners as trade takes place across national borders?

They become interdependent

What state is reached when the seller's and buyer's prices satisfy both parties?

Equilibrium

What does international trade involve across national borders?

To trade by exchanging one good or service for another

What is the term for money and goods used to help people make or do things?

Capital

Water, air, soil, plants, animals, and minerals are examples of what type of resource?

Natural resource

Haircuts, massages, pedicures, and restaurant servers are examples of what?

A Service

A video game, a skateboard, and a television are examples of what?

Goods

What is the primary goal of free trade?

A world market where people are free to choose what to Buy and Sell

What are the three fundamental questions of economics necessary to make the best economic decisions?

1. What? 2. How? 3. Who?

What is money paid by a company to its shareholders called?

Dividend

What is a credit score?

A $3$-digit number that shows how reliably you can pay back borrowed money on time