Economics Review 1

– focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively

• Trade

• Specialization

• domestic

both partners freely agree to and benefit from the exchange of goods/services

• Specialization

• Barter

• Voluntary Trade

a nation’s money

• Currency

• Money

• Peso

• dolaar

converting one nation’s money into an equivalent value/quantity of another’s

• Converter

• Currency Exchange

• Exchange Rate

• Barter

the approximate value of one nation’s currency in terms of another’s

• Currency Exchange

• Exchange Rate

• Convert

the level of wealth and material comfort available to a people

• Capital Good

• Human Capital

• Standard of Living

able to read and write in one’s native language

• illiterate

• literate

– the percent of a nation’s population over the age of 15 who are able to read and write

• Literate

• Exchange Rate

• Literacy Rate

– the average annual income of a nation’s citizens; per capita is Latin for “by each head”

• Income Tax

• GDP Per Capita

• GDP

the estimated total value of all the final goods and services produced in a nation in a year’s time.

• GDP

• Taxes

• GDP Per Capita

• Income Tax