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7th-Unit 2.5 SE Asia
SS7E7, SS7E8, and SS7E9 - Economics
Term | Definition |
---|---|
market economy | a country's economic decisions are based on what its people want to buy and sell |
command economy | the government controls what is produced, how it is produced, and who gets the products |
traditional economy | people produce what they need to survive by farming or hunting and gathering |
tariff | a tax on imported goods |
quota | a limit on the amount of a good that can be imported into a country |
embargo | a government order that stops trade with another country |
capital goods | factories, machines, technologies, buildings, and property needed for a business to operate |
human capital | workers of a business or country including their education, training, skills, and health |
entrepreneurship | the act of a person risking money, time, ideas, and energy to start and run a business |
specialization | when a country makes one or just a few goods or services, the cost of the items produced is lower |
mixed economy | term used to describe the blending of a market and command economy. |
economic continuum | a 0-100 scale which ranks world economies from mostly command (1) to mostly market (100). |
bartering | system of exchange where one good or service is given in return for another; no monetary exchange. |
free enterprise | the creation, maintenance, and expansion of businesses outside the control or influence of the government. |
rations | fixed amount of a product or service allowed during times of shortages; Example in Southern and Eastern Asia: food in North Korea. |
literacy rate | percentage of a country's citizens who have the ability to read and write. |
standard of living | the level of wealth and material comfort available to the people of a country. |
Gross Domestic Product (GDP) | the total value of all the goods and services produced in a country in one year |