Political system: The way a country is governed and how leaders make decisions., Economic system: The way a country produces, distributes, and uses goods and services., Market economy: An economy where businesses and individuals make decisions based on supply and demand, with little government control., Centrally planned economy: An economy where the government controls production, prices, and resources., Mixed economy: An economy that combines both private businesses and government control., Democracy: A political system where citizens vote to choose their leaders., Autocracy: A political system where one person has all or most of the power., Underdeveloped countries: Countries with very low income, limited industry, and weak infrastructure., Developing countries: Countries that are improving economically and industrially but are not fully developed., Developed countries: Countries with strong economies, advanced technology, and high living standards., Gross Domestic Product (GDP): The total value of all goods and services produced in a country in one year., Business cycle: The natural rise and fall of economic growth over time (boom → recession → recovery)., Absolute advantage: When a country can produce a product more efficiently than another country., Opportunity cost: The value of the next best choice you give up when making a decision., Comparative advantage: When a country can produce a product at a lower opportunity cost than another country., Lobbying: When corporations or groups try to influence government decisions and policies.

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