Economics Vocabulary Review

1
Economics Vocabulary Review
2

• The way in which a nation uses its resources to
  satisfy peoples needs and wants.
• Answer
• Economic Systems
• What are the three economic questions
• What will be produced?
• How will it be produced?
• For whom will it be produced?

3

• A system of government in which culture
  determines how goods are made, bought, and sold.
• Answer
• Traditional Economic System
• Give an example?
• Families, tribes, and clans have handed down
  traditions from generation to generation.

4

• An economic system that has features of
  traditional, command, and market systems (limited
  government control).
• Answer
• Mixed Economic Systems
• Example
• USA (most economies are mixed)

5

• A system where the government decides what to
  produce, how much to produce, and how the goods
  will be distributed. What is it?
• Answer
• Command Economic System
• Example
• North Korea Cuba

6

• An economic system base on individual choices and
  voluntary trade.
• Answer
• Market Economic System
• Example
• Free Market-people choose to buy and sell what
  they want! PURE COMPETITION

7

• An economic concept that states that the price
  () of a good rises or falls depending
  on how many people want it and depending on how
  much of the good is available.
• Answer
• Supply and demand
• Give an example of an item that is in high demand
  and low supply?
• i-phone when it first came out

8

• What is the economic term called when people want
  more than there is available. Wants exceed gt
  supply (limited)
• Answer
• Scarcity

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Vocabulary 2

• What is the term that limits the amount of items
  imported (coming in) to a country.
• Answer
• Quota

10

• Money accepted in any form that is accepted as a
  medium of exchange (usually paper money)
• Answer
• Currency

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• Government uses this idea to limit the trade of
  products between two countries.
• Answer
• Trade Barrier

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• This is a fee charged (TAX) for goods or services
  brought into a country from another country.
• Answer
• Tariff

imported goods
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• Price of one country's money in relation to
  another's. This may be fixed (not movable) or
  flexible (movable).
• Answer
• Currency Exchange

Dollar
Euro
Pound
Yen
14

• A type of trade barrier in which the government
  blocks imports exports of certain goods.
  Military force can be used to impose these!
• Answer
• Embargo

15

• What are the three types of trade barriers?
• Answer
• Tariff
• Quota
• Embargo

Big Three
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Vocabulary 3

• The increase in the value of all the goods and
  services a country makes from one year to the
  next.
• Answer
• economic growth

17

• The percentage of a countrys people who can read
  and write at an elementary school level.
• Answer
• literacy rate

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• Resource such a as factories, machinery, and
  tools that people use to make other goods.
• Tangible items that help to produce goods and
  help economic growth.
• Answer
• Capital (goods)

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• Using money to make money. The use of income
  today in a way that allows growth in the future.
• Answer
• Investment

20

• The total value of the goods and services
  produced in a country during a given time period
  (usually a year).
• Answer
• Gross domestic product (GDP)

21

• The knowledge and skills that allow workers to
  produce goods and services and earn an income.
• Answer
• human capital

22

• The raw materials used to support life and make
  goods (land, water, soil, minerals, climate etc.)
  One of the factors of production!
• Answer
• Natural Resources

23

• The business men/women who take risk and bring
  together natural resources, labor, and capital,
  to produce goods and services.
• Answer
• Entrepreneur