Economic systems

Bartering Trading goods or services
3 questions answered What to produce? How to produce it? For whom to produce?
Traditional economy Based on culture and rituals
Command economy Government controls all trade and business
Market Economic system based on free trade and competition
Suppy Amount that a business or person has
Demand How much wanted
Mixed economy Has a part of command and traditional economy
Specialization Making a living on what they do best
Natural resources Resources found in nature
Capital goods resources needed to do jobs
Human resources an entreprenuer
Entrepreneur A person willing to take a risk and start a business
Literacy rate The percentage of people in a country that know how to read and write
Standard of living Level of comfort in every day life
GDP per capita The average annual income of a nations citizens
Tarriff A tax place on imported goods brought in from another country
Quota Number limited on how many items of a particular product can be imported from a particular country
Embargo Bans on trading with another country for political reasons
Currency Money
Currency exchange Converting one nations money into an equal amount of other nations money

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