Key Economic Terms and Concepts

A set of vocabulary flashcards covering key economic terms and concepts discussed during the lecture.

Duty or Tariff

A tax levied by a government on the import or export of goods or services.

Industrialized Economy

A nation which is an exporter of manufactured goods, services and capital which it trades with other economies for raw materials and semi-finished products.

Market

A physical or virtual place where people meet for the purpose of trade by voluntary and private sales and purchases.

Monopoly

A market in which there are many buyers but only one seller.

Monopsony

A market in which there are many sellers but only one buyer.

Nation

A tightly-knit group of people who share a common culture.

Nation-State

A nation which has the same boundaries as a State, where all residents are of the same nationality group.

Non-tariff Trade Barriers

Any mechanism that restricts the goods and services entering or leaving a country.

Power Relationships

Relationships controlled by authority or other forms of governance.

Principle of Factor Endowment

An advantage due to factors that are not common to all countries, such as physical geography.

Protectionism

The deliberate use of restrictions on imports to enable domestic producers to compete with foreign producers.

Protective Tariff

A duty or tax on imported products to make them more expensive compared to domestic products.

Quota

A limitation on the quantity of goods that may be imported or exported from a country.

Revenue Tariff

A duty or tax on imported products to generate income for governments.

Silk Roads

Ancient trading routes that connected markets in Asia with the Mediterranean and the Middle East.

State

A self-governing political entity, often used interchangeably with the term country.

Subsistence Economy

An economy in which most people engage in simple agriculture, consuming most of their output.

Theory of Absolute Advantage

Proposed by Adam Smith, suggesting countries should produce and export products in which they have a cost advantage.

Theory of Comparative Advantage

Proposed by David Ricardo, suggesting countries should produce and export products for which they have the greatest comparative advantage.

Trade Barriers

Any limitation on the free international exchange of goods and services.