Economic Terms

Dr. Tariq Hussain

Assistant Prof.
CVAS, Jhang
Economy
System by which products are
produced, distributed, and
consumed.
Think: MONEY!!!
imports
products brought
into one country
from another to
sell.
Think Import =
INport
exports
products from one
country sent out
to another to sell.
Think of EXPORT-
EXIT

http://atlas.media.mit.edu/profile/country/usa/
tariffs
a fee or tax that a
government
charges for goods
entering the
country
A government will
impose tariffs to
keep people from
buying goods that
are imported.
Types of products:
Domestic: International/Foreign:
Products Products made in one
produced and country and sold in
sold in the same another.
country.
Capital
Is money and
goods used to
help people make
or do things.
You need capital
to run a business.
Capital continued.
1. Financial assets or the financial value of
assets, such as cash.

2. The factories, machinery and equipment

owned by a business and used in production.

Capital can mean many things. Its specific
definition depends on the context in which it is
used. In general, it refers to financial resources
available for use. Companies and societies with
more capital are better off than those with less
capital.
Entrepreneurship
Is the act of running a business and taking on
the risks of that business.
Usually describes individual or small
businesses.
barter system
goods and
services are
exchanged for
other goods and
services-no
money is used
Basically, people
are trading.
Developing vs. Developed Country
Developing Developed
Country: a country Country: a country
whos economy is whos economy is
based on based on industry
agriculture and is and
trying to become manufacturing.
industrialized. Also These countries do
known as an not need
emerging market. assistance from
others for survival.
Developed & Developing Countries
supply and demand
supply- how much demand- how
of something many people
there is. want an item.
supply and demand (cont.)
If supply is higher
than demand, the
price goes down.
If demand is
higher than
supply, the price
goes up.
inflation
A prolonged rise
in prices; you get
less for your
money than you
used to get.
Scarcity
Lack of a
resource.
This can affect
supply and
demand.
HOW????
Opportunity Cost
The opportunity cost of something
is what you give up to make it or
buy it.
recession
a downturn in
business activity
and economic
prosperity; not as
severe as a
depression
6 Months straight
of negative growth
in a countrys GDP.
depression
a severe recession
with high
unemployment
(jobless rate) and
low levels of trade
and investment
1 year (4 quarters)
of negative growth
in a countrys GDP.
Globalization
The process of countries being
involved in international trade.
Globalization increases the ties
among the worlds economies.
Memory Cues
Create a memory cue for each of
the economic terms. Use a
graphic, word, or phrase to help
you remember what each term
means. Be Creative!!!
Ex. Exports= EXIT