Economic systems

Term Definition
Economics The social science the 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 traditions. Example: Inuits and Amish
Command Economy When government controls everything. Example: North Korea,Cuba,and China
Market Based on free trade and competition. Example: NONE!!!!!
Capitalism System in which private owners control the production of goods and profit.
Supply How much people have.
Demand What or how much people want.
Mixed Economy Made of more than one. Example: Most of the countries in the world
Specialization Making a living doing what a person does best.
Natural Resources Items that come from the world around us that we use for our own purposes.
Capital goods Items that people need to perform their jobs.
Human resources A supply of people who can produce goods and services.
Entrepreneur People with new ideas that are willing to take a risks to produce a new product or service
Literacy rate The percent of people in a country that can read and write.
Standard of living Level of comfort in everyday life.
GDP per capita The average annual income of a nation's citizens.
Tariff A tax placed on imported goods brought in from another country.
Quota Number limit on how many goods can be imported.
Embargo Bans trading with another country for political reasons.
Currency Money
Currency exchange Converting one nation's money into an equal value of another nation's money.

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