Economics Vocabulary

The definition of 'economy' is:

• A system of production, distribution, and consumption of goods and services.

• A political ideology focused on individual freedoms.

• A type of government where power is held by a single ruler.

• A cultural movement emphasizing artistic expression.

The action of buying and selling goods and services is called:

• Commerce

• Manufacturing

• Agriculture

• Construction

A tax on imports is known as:

• Tariff

• Quota

• Subsidy

• Embargo

Trade without tariffs or other restrictions is called:

• Free trade

• Protectionism

• Subsidized trade

• Monopolistic trade

The process in which people, ideas, and goods spread throughout the world is known as:

• Globalization

• Urbanization

• Industrialization

• Colonization

The relationship between two or more people, regions, or nations in which each is dependent on the other for necessary goods or services is called:

• Interdependence

• Independence

• Isolation

• Competition

Obtaining goods or a service from a supplier or manufacturer outside your own country is called:

• Exporting

• Importing

• Outsourcing

• Insourcing

What is the amount of a specific good or service that is available to consumers?

• Demand

• Supply

• Equilibrium

• Price

What term describes how much consumers want to purchase something?

• Supply

• Demand

• Equilibrium

• Inflation

The production and sale of raw goods (farming, mining, forestry, etc.) is called:

• Primary Industry

• Secondary Industry

• Tertiary Industry

• Quaternary Industry