Economy- The wealth and resources of a country or
region, especially in terms of the production and consumption of goods and
services.
region, especially in terms of the production and consumption of goods and
services.
Command Economy- An economy in which business activities
and allocation of resources are determined by government order rather than
market forces.
***Cuba has a command economy***
and allocation of resources are determined by government order rather than
market forces.
***Cuba has a command economy***
Market Economy- An economy in which the greater part of
production, distribution, and exchange is controlled by individuals and
privately owned corporations rather than by the government.
***The United Kingdom, United States, and Australia have a market economy***
production, distribution, and exchange is controlled by individuals and
privately owned corporations rather than by the government.
***The United Kingdom, United States, and Australia have a market economy***
Import- Bringing goods or services into a country
from another country for sale.
Capitallism- An economic and
political system in which a country's trade and
industry are controlled by private owners by profit
political system in which a country's trade and
industry are controlled by private owners by profit
Traditional Economy-A system in
which people grow their own food and make their own goods. Social roles and
culture determine how goods and services are produced.
which people grow their own food and make their own goods. Social roles and
culture determine how goods and services are produced.
NAFTA- North American Free Trade Agreement was signed in
1994 by the United States, Mexico, and Canada. It eliminated or got rid of
tariffs (taxes) to make trade easier between the 3 countries.
1994 by the United States, Mexico, and Canada. It eliminated or got rid of
tariffs (taxes) to make trade easier between the 3 countries.
Mixed Economy- An economy which has elements of both
public and private enterprise.
***Canada, Russia, Germany, Brazil, Mexico, and Venezuela all have a mixed economy***
public and private enterprise.
***Canada, Russia, Germany, Brazil, Mexico, and Venezuela all have a mixed economy***
Pure Market Economy- An economic system in which the
government plays no role.
government plays no role.
Single Product Economy- A country that relies on one or
very small number of products (usually raw
materials) for its export earnings.
very small number of products (usually raw
materials) for its export earnings.
Export- When one country sends goods or services to
another country for sale.
another country for sale.
Trade- The act of buying and selling goods and
services.
services.
Scarcity- A word economists use to describe the conflict
between people's desires and limited resources.
between people's desires and limited resources.
Supply and Demand- An economic concept that states that
the price of a good rises or falls depending on how many people want it (demand)
and depending on how much of the good is available (supply).
the price of a good rises or falls depending on how many people want it (demand)
and depending on how much of the good is available (supply).
Barriers- An obstacle that prevents communication or
that keeps people or things apart.
that keeps people or things apart.
Tariffs- A fee imposed by governments to imported or exported goods.
Distribution- The process of moving products to a
market.
market.
Gross Domestic Products- The total value of all goods and services
produced domestical ly by a nation during a year.
produced domestical ly by a nation during a year.
Specialization- The division of labor; work is divided into parts
for workers, factories of countries to become expert at producing certain
goods
for workers, factories of countries to become expert at producing certain
goods
Currency- Money used in a particular country to buy and sell
goods
goods
Embargo- A government order stopping trade with another country
to put pressure on the government of that country, which results in various
forms of shortages in the country that has the embargo placed on
them.
to put pressure on the government of that country, which results in various
forms of shortages in the country that has the embargo placed on
them.
Physical Capital- Factories, machines, technologies, buildings,
and property needed for a business.
and property needed for a business.
Human Capital- Workers of a business or country including their
education, training, skills, and health.
education, training, skills, and health.
.
Entrepreneur- One who risks his or her money, time, ideas, and
energy to start and run a business
Entrepreneur- One who risks his or her money, time, ideas, and
energy to start and run a business
Quota- A limit placed on the number of imports that may enter a
country. In a centralized command economy, being told by government what and
how much to produce in a certain time.
country. In a centralized command economy, being told by government what and
how much to produce in a certain time.
Expense- The cost related to running a business
Income- Money paid to a person for a job that is done or money
coming into a business for services.
coming into a business for services.
Profit- Money left after business expenses are subtracted from
business income
business income
Standard of Living- This is the level of comfort, material goods,
and necessities available to individuals within a given
country.
and necessities available to individuals within a given
country.
.
.