The total value of all final goods and services produced within the borders of a nation in a given time period.

Strictly factual statements

Factual statements that include a value judgement

is the worth of a good or service determined by people's preferences and the trade-offs they choose given their scarce resources

are the things that motivate you to engage in certain behavior because they are the path towards achieving your preferences, such as wealth or social status. Disincentives, on the other hand, discourage you to behave in a certain way.

is a place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services and can be physical or digital

define the theoretical and legal ownership of resources and how they can be used. These resources can be both tangible or intangible and can be owned by individuals, businesses, and governments.

describes the inputs used in the production of goods or services in order to make an economic profit and include land, labor, capital, and human capital (entrepreneurship).

is the accumulated assets of an economic actor that can be used to generate income for the business. Capital includes all goods that are made or created by humans and used for producing goods or services. Capital can include physical assets, such as a production plant, or financial assets, such as an investment portfolio. Some treat the knowledge, skills and abilities that employees contribute to the generation of income as human capital.

are any person or unit of society that can use land, labor, and capital to engage in economic activity

Rational behavior refers to a decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual. The assumption of rational behavior implies that people would rather take actions that benefit them versus actions that are neutral or harm them.

is the order that a person (an agent) gives to alternatives based on their relative utility

is a term in economics that refers to the total satisfaction received from consuming a good or service

People know what they like and can rank different things.

More is always better than less

Preferences extend to other items. If I like A>B and B>C then you can guess that I would like A>C

Non-rivalrous and non-excludable goods that are undersupplied by the market

Rivalrous and non-excludable goods that are over comsumed in a market

Rivalrous and excludable goods that are allocated in a market based on supply and demand

Non-rivalrous and excludable goods that are underconsumed in a market

is the economic situation defined by an inefficient distribution of goods and services in the free market.

When the buyer and seller know different amounts of information about a good or service in a market

are a cost or benefit, not included in the price, that affect 3rd parties that did not buy or sell a good or service

refers to the increment in amount of goods and services produced by an economy.

is an improvement in the quality of life and living standards as measured by many economic and social variables

a tax imposed by a government of a country or of a supranational union on imports or exports of goods.

a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export.

an agreement, according to international law, to reduce trade protectionism

the difference in value between a country's imports and exports.

is a statement of all transactions made between entities in one country and the rest of the world over a defined period of time, such as a quarter or a year

is the deliberate attempt to limit imports or promote exports by putting up barriers to trade.

is a new industry in a country, which in its early stages experiences relative difficulty or is absolutely incapable of competing with established competitors abroad.

is when goods are exported at a price less than their normal value, generally meaning they are exported for less than they are sold in the domestic market or third-country markets, or at less than production cost.

Predicts trade flows based upon the size of two trading partner's economies and their physical distance from each other

trade agreements occur when two countries agree to loosen trade restrictions between the two of them, generally to expand business opportunities.

trade agreements are agreements among three or more countries, and are the more difficult to negotiate and agree.

usually refers to countries that have experienced rapid growth to quickly reached middle-income status, but then failed to overcome that income range to further catch up to the developed countries.

a branch of mathematics concerned with the analysis of strategies for dealing with competitive situations where the outcome of a participant's choice of action depends critically on the actions of other participants. Game theory has been applied to contexts in war, business, and biology.

is the word used to describe the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.

(in game theory) a situation in which two players each have two options whose outcome depends crucially on the simultaneous choice made by the other, often formulated in terms of two prisoners separately deciding whether to confess to a crime.

gives the possible outcome of a two-person zero-sum game when player A has possible moves and player B moves. The analysis of the matrix in order to determine optimal strategies is the aim of game theory.

a predicted value of a variable, calculated as the sum of all possible values each multiplied by the probability of its occurrence.

Non-rivalrous and non-excludable goods that are undersupplied by the market

Rivalrous and non-excludable goods that are over comsumed in a market

Rivalrous and excludable goods that are allocated in a market based on supply and demand

Non-rivalrous and excludable goods that are underconsumed in a market

is the economic situation defined by an inefficient distribution of goods and services in the free market.

When the buyer and seller know different amounts of information about a good or service in a market