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Economics
vocabulary words for Economics
Term | Definition |
---|---|
Traditional Economy | found in agricultural societies where people live the same way their parents and grandparents did; people produce what they need by farming or hunting and gathering; they make their own clothes and tools |
Command Economy | the government controls what is produced and how it is produced; the government owns the resources and decides who gets the products |
Market (Capitalist) Economy | a country's economic decisions are based on what its people want to buy and sell; people can own their own businesses and produce what they want (based on supply and demand) |
Mixed Economy | a combination of a market and command economy |
Tariff | taxes on imports |
Quota | limit on the amount of a good that can be imported |
Embargo | forbidding trade with a country |
Specialization | an efficient way to work to produce items that have a lower cost; increases trade because a country can get what it needs at the lowest cost when produced by someone who specializes in producing that item |
Human Capital | the workers of a country; investing in the education, skills, and training of workers will improve an economy |
Physical Capital | the factories or machinery; investing in new factories, machines, and technology helps and economy by providing workers with the newest and best tools |
Entrepreneurs | A person who takes a risk and provides the money to start and own a business. Provides jobs, tax money, and products for the economy. |
Gross Domestic Product (GDP) | the total value of the goods and services produced by a country's economy during a year |
Consumer | customer |
producer | maker of goods |
supply | amount of goods available |
demand | how many customers want the goods |
exchange rate | A fee that you pay to trade your money for another currency. |
natural resources | "gifts from nature" such as forests, water, minerals, and fertile soil |
scarcity | the limited supply of something |
imports | goods purchased from other countries |
wage | term for one's financial earnings |