Economic Systems

Economic Systems

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Term Definition
Economy In charge of the country goods and services being sold or exchanged
Bartering The exchange of goods and services for other goods and services without using money
3 questions answered What to produce? How to produce it?For whom to produce it?
Traditional Economy All members of the economy hunt together. No money profits; goal is to survive.
Command Economy Relies on government to make all economic decisions
Specialization Making a living doing what a person does best
Mixed Economy Limited government involvement while applying free market concepts
Natural Resources Items that came from the world around us that we use for our own purposes
Capital Goods Items that people nee to perform their jobs
Human Capital A supply of people who can produce goods and and sevices
Entrepreneur People with new ideas that are willing to take risks to start a business 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 per Capita The average annual income of a nations citizens
Tariff A tax placed on imported goods (goods bought in from another country)
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 for bids trade
Currency Money
Currency Exchange Converting one nations money into an equal value of another nations money
Market Economic system based on free trade and competition
Capitalism Private owners control the production of goods and profit
Supply How much is available
Demand What or how much people want

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