Economic Systems

Term Definition
Questions Answered 1.) What to Produce?2.) How to Produce it?3.) For whom to Produce it for?
Traditional Who has the resources: All members of the economy. EX: Hunters Gatherers
Bartering exchanging one good or service for another with out money (currency)
Capitalism Economic systems in which private owners control the production of goods and services and profit
Supply How much people have or is available
Demand How much people want
Command Government decides what goods or services are made and how they will be made
Market Economic systems based on free trade and competition
Mixed Combination of government and privately owned businesses
Specialalization Making a living doing what a person does best
Natural Resources Items that come from the world around us that we use for our own purposes EX: oil, trees, water,soil
Capital Goods Items that people need to preform their jobs EX: computer and update
Human Capital A supply of people who can produce goods and services Training ,Education, Heath Care
Entrepreneur People with new ideas that are willing to take a risk to start a business or make a product
Embargo Bans on trading with another country for political reasons or Forbids trade
Tariffs A tax placed on imported goods (goods brought in from another country )
Quota Number limit on how many items of a particular number can be imported from a particular country
Economics The social science that deals with the production distribution and consumption of goods and services
GDP The average annual income of a nations citizens
Standard of Living Level of comfort in every day life
Literacy Rate The percentage of people in a country who can read and write
Currency Money, Canadian Dollar, Mexican Peso, Brazillian Real, EU Euros
Exchange Rate Converting one nations money into an equal value of another nations money

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