International trade L.2

Open Economy

An economy that engages in international trade and financial exchanges with other countries.

Product

A good or service produced to satisfy consumer needs or wants.

Profit

The financial gain a business makes when revenue exceeds costs.

Pure Competition

A market structure with many sellers offering identical products, where no single seller can control the price.

Recession

A period of economic decline, usually defined as two consecutive quarters of negative GDP growth.

Socialism

An economic system in which the government or society controls major industries and resources.

Stakeholders

Individuals or groups affected by a company's decisions, such as employees, customers, investors, and the community.

Standard of Living

The level of wealth, comfort, and access to goods and services enjoyed by a person or group.

Supply

The quantity of a product that producers are willing and able to sell at various prices.

Unemployment

The situation in which people are willing and able to work but cannot find a job.

Budget Deficit

When a government spends more money than it receives in revenue.

Business

An organization that produces goods or services for profit.

Capitalism (Free Enterprise)

An economic system in which private individuals or businesses own the means of production and operate for profit.

Communism

An economic system in which all property and resources are owned collectively, often by the state.

Competition

The rivalry among businesses to sell goods and services to consumers.

Demand

The quantity of a good or service that consumers are willing and able to buy at different prices.

Depression

A prolonged and severe downturn in economic activity, often worse than a recession.

Economic Contraction

A decline in economic activity, including production, employment, and income.

Economic Expansion

A period of increasing economic activity, including growth in GDP, employment, and income.

Economic System

The structure a society uses to produce, distribute, and consume goods and services.

Economics

The study of how individuals and societies allocate scarce resources to meet their needs and wants.

Entrepreneur

A person who starts, manages, and takes on the risks of a business.

Equilibrium Price

The price at which the quantity demanded equals the quantity supplied.

Financial Resources (Capital)

Money or assets used to fund businesses, investments, or production.

Free-Market System

An economic system in which prices and production are determined by supply and demand with minimal government intervention.

Gross Domestic Product (GDP)

The total value of all goods and services produced in a country during a specific period.

Human Resources (Labor)

The workforce; people who contribute physical or mental effort to production.

Inflation

The rate at which the general level of prices for goods and services rises, reducing purchasing power.

Mixed Economies

Economic systems that combine elements of capitalism and socialism.

Monopolistic Competition

A market structure in which many sellers offer similar but not identical products.

Monopoly

A market structure in which a single seller controls the entire market for a product or service.

Natural Resources

Materials or substances occurring in nature that are used to produce goods and services.

Nonprofit Organizations

Organizations that operate to provide services or support a cause rather than to make a profit.

Oligopoly

A market structure dominated by a few large firms that have significant control over prices and production.

shareholder

A shareholder is a person or organization that owns shares in a company and therefore has a financial interest in its success. So a shareholder is a Stakeholder.