Economic Systems

Term Definition
Economics The social science that deals with the production , distribution,and consumption of goods and services
Bartering Exchanging 1 good or service for another
Questions Answered What to produce?How to produce it?For whom to produce?
Traditional Econmy All members of the economy own the natural resources and there is no profit
Command Econmy The government decides what good are made and how they will be made
Market Econmy Economic System based on free trade and competition
Supply How much people have
Demand What/how much people want
Specialization Making a living doing what a person does best
Mixed Econmy Combination of government and privately owned buisnesses
Human Capital A supply of people who can produce goods & services
Entrepenur People with new ideas that are willing to start a business/make a product
Natural Resorces Items that come from the world around us that we use for our own purposes
Capital Goods Items that people need preform their job
GDP The average annual income of a nation's citizens
Standard of Living Level of comfort in everyday life
Literacy Rate The percentage of people in a country who can read or write
Specialization Making a living doing what a person does best
Currency Money
Exchange Rate Converting 1 nation's money into an equal value of another nation's money
Embargo Bans on trading with another country for political reasons
Tariffs A tax placed on imported goods brought in from another country
Quotas A number limit on haw many items of particular product can be imported from a particular country

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