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Economics

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Term
Definition
Trade barriers   government policies which place restrictions on international trade. Ex. tariffs, quotas, embargoes  
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Tariff   tax on imports  
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Quota   limits on the number of traded goods  
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Embargo   prohibition of trade with a certain country. For example, the U.S. will not allow trade with North Korea.  
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Free trade   removal of trade barriers  
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NAFTA   signed in 1994, the North American Free Trade Agreement eliminated all trade barriers between Canada, the United States and Mexico.  
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Import   good or service sold within a country that is produced in another country; good or service made in another country and brought into the country where they are sold  
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Export   good or service produced within a country and sold outside of the country's borders; good or service made in one country and sent out to another country for sale  
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Gross Domestic Product   (GDP) the total value of the final goods and services produced within a country in one year.  
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4 Types of Economies   Traditional, Market, Command and Mixed  
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3 Economic Questions   What to produce? How to produce? and For whom to produce?  
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Natural Resources   something that comes from Earth or nature that is useful to humans.  
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Capital Goods   tools used in the production of goods and services.  
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Human Capital   the value that humans bring to the marketplace; includes the education, training, skills, and health care of the workers in a business or country.  
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Entrepreneurship   the ability to organize, manage, and take on the risks of a business or enterprise.  
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