Civics Unit 5 Vocabulary

Test Wednesday March 26, 2025

GDP

Currency value of all final goods and services produced within a country’s borders

Real GDP

Currency value of all final goods and services produced within a country’s borders minus the effects of inflation 

Inflation

A general rise in the price level of an economy

Consumption

Dollar value of all goods and services purchased by households

Investment

Dollar value of all goods and services purchased by business for the purpose of using in their business

Government Spending

Dollar value of all goods and services purchased by the various agencies of the United States. 

Net Exports

Dollar value of all goods and services produced in the United States and shipped to other countries MINUS the value of the goods and services imported from other countries

Aggregate Demand

The amount of goods and services ALL buyers in
the economy are willing/able to buy at all the
possible price levels

Aggregate supply

The amount of goods and services ALL companies are willing to produce at ALL possible price levels 

GDP per Capita

Currency value of all final goods and services produced within a country’s borders divided by the population 

Imports

Goods and services produced in other countries, then brought to the United States in exchange for
currency 

Exports

Goods and services produced in the United States, then sent to other countries in exchange for currency 

Economics

the branch of knowledge concerned with the production, consumption, and transfer of wealth

Economics

b. a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services

Scarcity

the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources

Gerrymander

in U.S. politics, the practice of drawing the boundaries of electoral districts in a way that gives one political party an unfair advantage over its rivals (political or partisan gerrymandering) or that dilutes the voting power of members of ethnic or linguistic minority groups (racial gerrymandering).