Civics Chapter 21 Study Guide

a person or company that makes or provides a good or service that satisfies consumers needs and wants

• consumer

• producer

• absolute advantage

• trade surplus

when a nation can provide it more cheaply than its trading partners

• circular-flow model

• competition

• absolute advantage

• tight money policy

person who buys goods or services

• leading indicators

• trade barrier

• producer

• consumer

demonstrates how the U.S. economy works through exchange between consumers, producers, and the government

• circular-flow model

• opportunity cost

• open market operations

• reserve requirement

is the difference between the value of its exports and embargoes

• coincident indicators

• balance of payments (trade)

• producer

• competition

is the value of what a country chooses to give up to specialize

• tight money policy

• absolute advantage

• opportunity cost

• open market operations

they lead major changes in the business cycle

• coincident indicators

• leading indicators

• consumer

• balance of payments (trade)

they lead major changes in the business cycle

• coincident indicators

• leading indicators

• consumer

• balance of payments (trade)

economic rivalry among businesses selling similar products

• competition

• trade surplus

• trade barrier

• reserve requirement

shows economists how the economy is doing at the present time

• leading indicators

• coincident indicators

• circular-flow model

• opportunity cost