Gross

Domestic
Product
(GDP)

 Gross domestic product (GDP) is the total monetary or market value of all
the finished goods and services produced within a country's borders in a
specific time period. As a broad measure of overall domestic production, it
functions as a comprehensive scorecard of a given country’s economic
health.
 GDP provides an economic snapshot of a country, used to estimate the size
of an economy and growth rate.
 GDP can be calculated in three ways, using expenditures, production, or
incomes. It can be adjusted for inflation and population to provide deeper
insights.
 Though it has limitations, GDP is a key tool to guide policymakers, investors,
and businesses in strategic decision making.

Export

 Exports are incredibly important to modern economies because they offer

people and firms many more markets for their goods. One of the core
functions of diplomacy and foreign policy between governments is to foster
economic trade, encouraging exports and imports for the benefit of all
trading parties.
 Exports facilitate international trade and stimulate domestic economic
activity by creating employment, production, and revenues.
 Export refers to a product or service produced in one country but sold to a
buyer abroad.
 Exports are one of the oldest forms of economic transfer and occur on a
large scale between nations.
 Exporting can increase sales and profits if they reach new markets, and
they may even present an opportunity to capture significant global market
share.
 Companies that export heavily are typically exposed to a higher degree of
financial risk.

Investmen
t

 An investment is an asset or item acquired with the goal of generating

income or appreciation. Appreciation refers to an increase in the value of an
asset over time. When an individual purchases a good as an investment, the
intent is not to consume the good but rather to use it in the future to
create wealth.
 An investment always concerns the outlay of some asset today (time, money,
effort, etc.) in hopes of a greater payoff in the future than what was
originally put in.
 An investment can refer to any mechanism used for generating future
income, including bonds, stocks, real estate property, or a business, among
other examples.

Literacy
Rate
 Literacy rate is the total number of literate persons in a given age group,
expressed as a percentage of the total population in that age group. The
adult literacy rate measures literacy among persons aged 15 years and
older, and the youth literacy rate measures literacy among persons aged 15
to 24 years.
Economics

 Economics is the study of how people allocate scarce resources for

production, distribution, and consumption, both individually and collectively.
 Two major types of economics are microeconomics, which focuses on the
behavior of individual consumers and producers, and macroeconomics, which
examine overall economies on a regional, national, or international scale.
 Economics is especially concerned with efficiency in production and
exchange and uses models and assumptions to understand how to create
incentives and policies that will maximize efficiency.
 Economists formulate and publish numerous economic indicators, such as
gross domestic product (GDP) and the Consumer Price Index (CPI).
 Capitalism, socialism, and communism are types of economic systems.

Scarcity
 Scarcity refers to the basic economic problem, the gap between limited –
that is, scarce – resources and theoretically limitless wants.
 This situation requires people to make decisions about how to allocate
resources efficiently, in order to satisfy basic needs and as many additional
wants as possible.
  Any resource that
has a non-zero cost
to consume is scarce
to some degree, but
what matters in
practice is relative
scarcity. Scarcity is
also referred to as
"paucity."
 Scarcity is when the
means to fulfill ends are limited and costly.
 Scarcity is the foundation of the essential problem of economics: the
allocation of limited means to fulfill unlimited wants and needs.
 Even free natural resources can become scarce if costs arise in obtaining or
consuming them, or if consumer demand for previously unwanted resources
increases due to changing preferences or newly discovered uses.

Standard
of Living

 A standard of living refers to the amount and quality of material goods and
services available to a given population. The standard of living includes basic
material factors such as income, gross domestic product (GDP), life
expectancy, and economic opportunity. The standard of living is closely
related to quality of life, which can also include factors such as economic
and political stability, political and religious freedom, environmental quality,
climate, and safety.
 Standard of living is the material well being of the average person in a given
population. It is typically measured using GDP per capita.
 Standard of living and quality of life are similar in that they utilize some of
the same data, but standard of living represents a more physical aspect of
life while quality of life represents the more intangible aspects of life.
 One alternative standard of living data set is the HDI, Human Development
Index, which uses many factors from life expectancy and education, to GNI,
and homicide rates.

Import
  An import is a good
or service bought in
one country that
was produced in
another. Imports
and exports are the
components
of international
trade.
 If the value of a country's imports exceeds the value of its exports, the
country has a negative balance of trade (BOT), also known as a trade deficit.
 An import refers to a product or service produced in abroad that is
purchased in your home country.
 Countries are most likely to import goods or services that their domestic
industries cannot produce as efficiently or cheaply as the exporting country.
 Free trade agreements and tariff schedules often dictate which goods and
materials are less expensive to import.
 Economists and policy analysts disagree on the positive and negative impacts
of imports.

Exchange
Rate  An exchange rate is the
value of a country's
currency vs. that of another
country or economic zone.
 Most exchange rates are
free-floating and will rise or
fall based on supply and
demand in the market.
 Some currencies are not
free-floating and have
restrictions.

Tariff
 A tariff is a tax imposed by one country on the goods and services imported
from another country.
 Tariffs are used to restrict imports by increasing the price of goods and
services purchased from another country, making them less attractive to
domestic consumers. 
 Governments impose tariffs to raise revenue, protect domestic industries,
or exert political leverage over another country.
 Tariffs often result in unwanted side effects, such as higher consumer
prices.
 Tariffs have a long and contentious history, and the debate over whether
they represent good or bad policy rages on to this day .

Quota

 A quota is a government-imposed trade restriction that limits the number

or monetary value of goods that a country can import or export during a
particular period. 
 Countries use quotas in international trade to help regulate the volume of
trade between them and other countries.
 Within the United States, there are three forms of quotas: absolute,
tariff-rate, and tariff-preference level.
 Tariffs are taxes one country imposes on the goods and services imported
from another country.
 Because tariffs increase the cost of imported goods and services, they
make them less attractive to domestic consumers.
 Highly restrictive quotas coupled with high tariffs can lead to trade
disputes and other problems between nations.

Trade
Barriers

 Trade barriers are legal measures put into place primarily to protect a
nation’s home economy. They typically reduce the quantity of goods and
services that can be imported. Such trade barriers take the form of tariffs
or taxes and generally benefit governments, domestic producers, and
national interests at the expense of consumers.
 Trade barriers usually exist to protect domestic producers or to further
political agendas. 

OPEC
(Organiza
tion of  The
the Petroleum
Organization of
Exporting

the Countries (OPEC) is a group

consisting of 14 of the world’s

Petroleum
major oil-exporting nations.
OPEC was founded in 1960 to

coordinate the petroleum policies
Exporting of its members and to provide
member states with technical and

Countries)

economic aid.
OPEC is a cartel that aims to manage the supply of oil in an effort to set
the price of oil on the world market, in order to avoid fluctuations that
might affect the economies of both producing and purchasing countries.
 Countries that belong to OPEC include Iran, Iraq, Kuwait, Saudi Arabia, and
Venezuela (the five founders), plus the United Arab Emirates, Libya,
Algeria, Nigeria, and five other countries.
 The arrival of fracking technology for natural gas in the U.S. has reduced
OPEC’s ability to control the world market.
Producers
 A producer is someone who creates and
supplies goods or services.
 Producers combine labor and capital—
called factor inputs—to create—that is, to
output—something else. 
 Business firms are the main examples of
producers and are usually what economists
have in mind when talking about producers.
However, governments are producers of
some kinds of services—such as police
services, defense, public schools, and mail
delivery—and sometimes goods, such as when
a government owns the oil fields and oil
production (for example, OPEC). 
 Households and individuals are producers of non-market goods and services
such as cleaning, child-rearing, cooked food, etc. Entrepreneurs, by
contrast, are idea-creators. They often also start off their ideas as
producers.
Currency

 Currency is a medium of exchange for goods and services. In short, it's

money, in the form of paper or coins, usually issued by a government and
generally accepted at its face value as a method of payment.
 Currency is the primary medium of exchange in the modern world, having
long ago replaced bartering as a means of trading goods and services.
 The value of any currency fluctuates constantly in relation to other
currencies. The currency exchange market exists as a means of profiting
from those fluctuations.

Mixed
Economy
  A mixed economic system is a system that combines aspects of
both capitalism and socialism.
 A mixed economic system protects private property and allows a level of
economic freedom in the use of capital, but also allows for governments to
interfere in economic activities in order to achieve social aims.
 According to neoclassical theory, mixed economies are less efficient than
pure free markets, but proponents of government interventions argue that
the base conditions required for efficiency in free markets, such as equal
information and rational market participants, cannot be achieved in practical
application.
 A mixed economy is an economy organized with some free market elements
and some socialistic elements, which lies on a continuum somewhere between
pure capitalism and pure socialism.
 Mixed economies socialize select industries that are deemed essential or
that produce public goods.
 All known historical and modern economies are examples of mixed
economies, though some economists have critiqued the economic effects of
various forms of mixed economy.

Goods
Goods are items that satisfy human
wants and provide utility, for example,
to a consumer making a purchase of a
satisfying product. A common
distinction is made between goods
which are transferable, and services,
which are not transferable.

Voluntary
Trade
 Producing those goods a country can make most efficiently so they
can trade them for goods made by others that cannot be produced locally.
 People voluntarily exchange goods and services because they expect to be
better off after the exchange
 A voluntary trade is one in which both parties gain an individual benefit
from making the exchange. 

Specializa
tion
 Specialization is a method of production whereby an entity focuses on the
production of a limited scope of goods to gain a greater degree of
efficiency.
 Many countries, for example, specialize in producing the goods and services
that are native to their part of the world, and they trade them for other
goods and services.
 This specialization is thus the basis of global trade, as few countries have
enough production capacity to be completely self-sustaining.
 Specialization in business involves focusing on one product or a limited
scope of products so as to become more efficient.
 Specialization can increase the productivity of and provide a comparative
advantage for a firm or economy.
 Microeconomic specialization involves the individual actors and economic
components, and macroeconomic specialization involves the broad advantage
an economy holds in production.

Consumer
 A consumer is a person or a
group who intends to order,
orders, or uses purchased goods,
products, or services primarily
for personal, social, family,
household and similar needs, not
directly related to
entrepreneurial or business
activities.
 A consumer is a person that
buys a good for consumption.
They don't buy goods to sell
them again.
 The consumer is a person who pays money needed to buy goods and services
produced. Consumers are important in the economic system of a country.
Without consumer demand, producers don't have a reason to produce.

Embargo
  An embargo is a
government order that
restricts commerce with a
specified country or the
exchange of specific goods.
 An embargo is usually
created as a result of
unfavorable political or
economic circumstances between nations.
 It is designed to isolate a country and create difficulties for its governing
body, forcing it to act on the issue that led to the embargo.
 Embargoes can have serious negative consequences on the affected nation's
economy.
 Decisions on trade embargoes and other economic sanctions are often based
on mandates by the United Nations.

Internatio
 International trade is the exchange
nal Trade of goods and services between
countries.
 Trading globally gives consumers and
countries the opportunity to be
exposed to goods and services not
available in their own countries, or
which would be more expensive
domestically.
 The importance of international trade
was recognized early on by political
economists like Adam Smith and David
Ricardo.
 Still, some argue that international
trade actually can be bad for smaller
nations, putting them at a greater
disadvantage on the world stage.

Command
Economy  A command economy is a system
where the government, rather
than the free market,
determines what goods should be
produced, how much should be
produced, and the price at which
the goods are offered for sale.
 It also determines investments and incomes.
 The command economy is a key feature of any communist society. Cuba,
North Korea, and the former Soviet Union are examples of countries that
have command economies, while China maintained a command economy for
decades before transitioning to a mixed economy that features both
communistic and capitalistic elements.
 A command economy is when government central planners own or control the
means of production, and determine the distribution of output.
 Command economies suffer from problems with poor incentives for
planners, managers, and workers in state-owned enterprises.
 Central planners in a command economy are unable to rationally determine
the methods, quantities, proportions, location, and timing of economic
activity across an economy without private property or the operation of
supply and demand.
Traditiona
l Economy

 A traditional economy is a system that relies on customs, history, and time-

honored beliefs. Tradition guides economic decisions such as production and
distribution. Societies with traditional economies depend on agriculture,
fishing, hunting, gathering, or some combination of them. They use barter
instead of money.

Capital
Resources  Capital resources are people-
made products utilized in
creating goods and services.
(Producers are people who
provide such goods and
services.) Capital resources are
used to generate profits or
income. They can also be
defined as goods "used to make
other goods and services"
 The term capital resource is an
economic concept that refers to man-made elements employed to produce
goods or services. They are resources that allow the company to carry on
with its productive activities.
Human
Resources  Human resources is the set of
the people who make up the
workforce of an organization,
business sector, industry, or
economy. A narrower concept
is human capital, the
knowledge which the
individuals embody. Similar
terms include manpower, labor,
personnel, associates or simply
people.
Human resources is used to
describe both the people who
work for a company or organization and the department responsible for
managing all matters related to employees, who collectively represent one of
the most valuable resources in any businesses or organization.

Natural
Resources
 Natural resources are
resources that exist
without any actions of
humankind. This includes
all valued characteristics
such as commercial and
industrial use, aesthetic
value, scientific interest
and cultural value. On
Earth, it includes sunlight,
atmosphere, water, land
along with all vegetation,
and animal life
 Natural resources are usually either renewable or non-renewable. The
former refer to those resources that can renew themselves in time. These
include living resources like forests or non-living ones like wind, water, solar
energy

Entrepren
eurship
 Entrepreneurship refers to the concept of developing and managing a
business venture in order to gain profit by taking several risks in the
corporate world. Simply put, entrepreneurship is the willingness to start a
new business. Entrepreneurship has played a vital role in the economic
development of the expanding global marketplace.
 An entrepreneur is someone who is willing to work for himself and by
himself.

Services
 A service is a transaction in
which no physical goods are
transferred from the seller
to the buyer. The benefits of
such a service are held to be
demonstrated by the buyer's
willingness to make the
exchange. Public services are
those that society as a whole
pays for. 
 Services are the non-
physical, intangible parts of
our economy, as opposed to goods, which we can touch or handle. Services,
such as banking, education, medical treatment, and transportation make up
the majority of the economies of the rich nations. They also represent most
of the emerging nations' economies.
MA. KYLA WAYNE H. LACASANDILE 12-EUCLID