flash cards

Economic Systems

Question Answer
Economy The social science that deals with the production, distribution, and consumption of goods and services.
Bartering Exchanging one good or service for another.
3 questions answered What to Produce, How to Produce it, For whom to Produce it.
Traditional Economy Based on customs and beliefs.
Command Economy Relies on government to make all economic decisions
Market Consumer choices determines how industry and financial markets operate.
Capitalism Economic system based on private owners.
Supply How much someone has
Demand How much of an item people are willing to pay for.
Specialization Making a living doing what a person does best
Natural Resources Items that can be found from the world around us that we can use for our own purposes.
Capital Goods Items that people need to perform their jobs.
Human Capital A supply of people who can produce goods and resources.
Entrepreneur People with new ideas that are willing to take risks to start a buisness or make a product.
Literacy Rate The percentage of people in a country who can read and write.
Standard of Living Level of comfort in everyday life.
GDP(Gross Domestic Product) The average annual income of a nations citizens.
Tariff A tax placed on imported goods.
Quota Number limit on how many items of a particular product can be imported from a particular country.
Embargo Bans on trading with another country for political reasons, forbids trade.

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