Gains from Trade
The increased output resulting from trade; with trade, each individual, region or nation is able to concentrate on producing goods and services that it produces efficiently, while trading to obtain goods and services that it does not produce.
The movement of output and income from one sector of the economy to another; often illustrated as a circular flow diagram.
Although there is no one precise definition, the term usually refers to the increased flow of trade, people, investment, technology, culture and ideas among countries.
Something a person or organization plans to achieve in the future; an aim or desired result.
Tangible objects that can be bought and sold, such as cars, houses, computers, and cell phones. Often distinguished from services.
Goods and services provided by government and paid for by taxing and borrowing. Federal government expenditures include national defense and a system of justice. State and local government expenditures include police, roads and public education.
Policy and budget choices by government officials that result in inefficiency.
Government Failures/Public-Choice Analysis
In a civics textbook, a democratically elected government makes decisions according to the will of (a majority of) the people. In the real world, government failure may occur so that government decisions do not represent the majority. Public-choice analysis is the branch of economics that studies how political decisions are actually made. When analyzing government policies, it is useful to examine the incentives of the participants in the government decision making.
Funds raised through taxing and borrowing to pay for government expenditures.
Spending by all levels of government on goods and services; includes categories like military, schools and roads.
Gross Domestic Product (GDP)
The market value of all goods and services produced in a nation in a calendar year. (Compare Gross domestic product, real.)
A total amount of money earned (from salaries, wages, etc.) before taxes and other deductions are withheld. (Also known as gross pay)