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Economic systems
economic systems
Term | Definition |
---|---|
Economy | The social science that deals with production, distribution, and consumption of goods and services |
Bartering | Exchanging one good or service for another |
Capitalism | Economic system where private owners control the production of goods and profit |
Supply | How much people have |
Demand | What or how much people want |
Gross Domestic Report (GDP) | The value of all of the goods and services produced in a country per year |
Standard of living | Level of comfort in everyday life |
Literacy rate | The percentage of people in a country who can read and write |
specialization | making a living doing what a person is best at |
currency | money |
exchange rate | how much one currency is worth in terms of another |
Voluntary trade | describes a market where buyers and sellers can buy and sell products or refuse to if they choose |
what to_______? How to______ it? For whom to________? | produce |
Market economy | an economic system in which economic systems and the pricing of goods and services are under the citizens control |
command economy | an economy in which investments, production, prices and income are determined by the government |
mixed economy | an economic system combining public and private enterprise |
traditional economy | a system that relies on custom, history and time-honored beliefs |
Natural resources | resources that are not man made. They come from the earth |
Capital goods | goods that are used in producing goods |
human capital (resource) | A supply of people who can produce goods and services |
entrepreneur | people with new ideas willing to take risks to start a business to make products or start a business |
Tariff | a tax on imported goods |
Embargo | forbids trade from certain countries |
Quota | restricts or limits the amount of goods imported |
2 examples of capital goods | factories and machinery |
3 ways to invest in human capital | health care, education and training |
European Union | purpose is to strengthen the economic, political, and defensive ties of member nations |
Euro | the European currency |