Economics Vocabulary Review

Front

A community of people living a particular region and having shared customs, laws, and organizations.

Back

Society

Front

Most of the economic decisions are made based on customs and the habit of how such decisions were made in the past.

Back

Traditional Economy

Front

The government planning groups make most of the basic economic decisions. What type of economy is this?

Back

Command Economy

Front

One in which society's economic decisions are made by individuals.

Back

Market Economy

Front

Located on a continuum between a pure market and a pure command economy.

Back

Mixed Economy

Front

Both parties in the transaction see that they will be able to gain something from the exchange; ideally there is no government restriction or regulation, either between individuals or countries.

Back

Voluntary Trade

Front

Products a country makes best and are in demand on the world market.

Back

Specialization

Front

Anything that slows down or prevents one country from exchanging goods with another country.

Back

Trade barriers

Front

A tax placed on goods when they are imported (brought into one country from another country.)

Back

Tariff

Front

Makes the imported item more expensive than a similar item made locally.

Back

Protective Tariff