click below
click below
Normal Size Small Size show me how
Unit 5 Vocabulary
European economics
Question | Answer |
---|---|
economics | the production, consumption, and distribution of goods and services |
traditional | economic activities based on past traditions; subsistence living |
command | economy government controls production |
market economy | owners and customers decide what to make; based on supply and demand; entrepreneurship is possible. |
mixed economy | blend of market and command economies. The government makes some decisions and individuals make some decisions; entrepreneurship is possible |
international trade | exchange, purchase, or sale of goods between countries |
barter | trade goods or services |
trade | Both parties gain when people engage in voluntary, non-fraudulent exchange of goods or services |
tariff | tax placed on an import |
quota | limit on the amount of goods and services imported |
embargo | ban on trade |
currency | money |
human capital | workers of a business or country including their education, training, skills, health |
capital resources | land, buildings, tools, and money use to produce goods |
GDP | gross domestic product = the total number of goods and services produced within a year. |
natural resources | things found in nature “gifts of nature” |
scarcity | shortage of goods and services |
goods | materials/items/products to be sold |
service | a job people do for others |
supply | amount available for people to purchase |
demand | how much people want and are willing to buy |
entrepreneur | A person who risks capital in order to open a business |
consumer | a person who USES goods or services |
producer | a person who CREATES a good or service |
Euro | European Union's currency |
Law of Supply and Demand | determines price based on amount of goods available, how many consumers want the goods, and what they are willing to pay |