FINANCE 1 - Chapter 2 Economic and the Global Economy | Quizlet

fiat money

money deemed by the government to be legal tender

international trade

the exchange of goods and services among nations

budget deficit

the national debt is created when the government borrows money to cover the

Deflation

A situation in which prices are declining

Inflation

A general and progressive increase in prices

budget surplus

When government gets more Revenue than it spends

regulator

a government role that it plays to protect investors workers consumers in the environment

patent

the exclusive right granted to an inventor to prevent anyone else from using the invention for a. Of time

Copyright

exclusive right granted to an author

intellectual property

a person's original idea or invention is called

Trademark

legal rights given to a company to protect the company's name repetition by regulating use of a company logo

indicators

are statistical economic values that help measure variables in the economy

gross domestic product GDP

the value of all final goods and services produced in a country in a given period of time

Consumer Price Index (CPI)

produced by the Bureau of Labor Statistics to measure the cost of a basket of goods and services for an urban family

recession

an economic downturn that lasts for 6 months is known as a

trough

a low point in a business cycle

absolute advantage

the ability of a country to produce more of a product than can another country

comparative advantage

the ability of a country to produce a product at a lower opportunity cost than another country

balance of trade

the difference between the value of a country's imports and exports a specific period of time.

money supply

the total amount of money in circulation in the country

the Federal Reserve System

regulates the US banking system and guides monetary policy

Embargo

is used to restrict imports and exports when there is a health issue

Quota

a restriction on the quantity or value of imported goods

Tariff

increases the price of imported product which helps domestic companies compete

protectionism

when a nation practices this it creates barriers to free trade

interdependent

trade is necessary because everyone is economically this

specialization

this occurs when tasks are divided among different workers to help increase productivity