| Term | Definition |
| comparative advantage | an ability to produce a good more
efficiently than others |
| consumer price index (CPI) | a measure of the price changes in
consumer goods and services used to
identify changes in the cost of living |
| cyclical unemployment | loss of jobs caused by periodic decreases
in the growth of business |
| depression | a prolonged downturn in the economy,
characterized by high unemployment
and widespread loss of income |
| disposable personal income | the amount of income that households
have to spend or save after payment of
personal taxes; net personal income |
| exports | goods and services produced in one
country and sold to other countries |
| frictional unemployment | temporary loss of jobs caused by the
changing of seasons and shifting of
employees to new jobs |
| gross personal income (GPI) | the amount of money earned by all
individuals in a country in one year |
| imports | goods and services bought by one
country from another |
| inflation | a sustained increase in the average price
of goods and services resulting in a loss
of the purchasing power of money |
| interdependence | in economics, the notion that people and
countries throughout the world need the
goods produced by other people and
countries |
| international trade | trade between countries |
| prosperity | a period of economic growth; a general
increase in the demand for goods and
services |
| structural unemployment | loss of jobs caused by a shift in the way
work is done, leaving some individuals
without the skills necessary for available
jobs |
| tariff | a tax placed on imported goods |
