Unit 3 Vocabulary

Front

A system in which private citizens own most, if not all, of the means of production and decide how to use them within legislated limits. What is this system called?

Back

Capitalism

Front

Which economic system is one in which the government owns some factors of production and distributes the products and wages?

Back

Socialism

Front

Which economic system is one in which the central government directs all major economic decisions?

Back

Communism

Front

The practice of transferring jobs to an outside country in order to utilize cheaper labor is called ________.

Back

Outsourcing

Front

The mutual dependence of the participants in an economic system who trade in order to obtain the products they cannot produce efficiently for themselves is called ________.

Back

Interdependence

Front

The ability of a country to produce a good at a lower opportunity cost is known as ________.

Back

Comparative advantage

Front

A tax on an imported good is called a ________.

Back

Tariff

Front

A limit on the number of products that can be imported is called a ________.

Back

Quota

Front

Whenever a country is exporting more than it is importing, it is called a ________.

Back

Trade surplus

Front

Whenever a country is importing more than it is exporting, it is called a ________.

Back

Trade deficit