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Economics Vocabulary
Term | Definition |
---|---|
Command | a type of economy where the government makes all economic decisions |
Traditional | a type of economy where people make only enough for themselves and jobs have been the same for generations |
Mixed | a combination of many types of economies. Its the most common |
Market | people make their own decisions about the economy |
quota | when government places a limit on how much of a product can be sold or produces |
tariff | a tax placed on imported goods |
embargo | to cut off trade with another country |
specialize | to make one product because it can be made cheaper or better using the steps of the production process |
human capital | the people that are used to make products |
natural resources | things created by nature. Like minerals or plants. |
opportunity costs | the value of the product you choose not to make or produce. |
entrepreneur | people who organize the productive resources in order to start a business |
capital resources | the machines or tools used to produce goods |
economics | the study of how people choose resources to produce and distribute goods |
Production process | the three steps used to make a good or product |
scarcity | a limit on the quantity of a resource. |
trade off | deciding to less of one thing in order to get more of another |
trade barriers | anything that limits trade |
interdependence | relying on others for some goods or resources |
import | goods purchased from other countries |
export | goods sold to other countries |