Economic Terms

Front

trade without barriers or conditions

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voluntary trade

Front

When a country produces what they can make most efficiently, so they can trade for what they can't make

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specialization

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Mountains, rivers, deserts, etc. that can block trade between people or countries

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natural trade barriers

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a limit on an item that can be imported

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quota

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a tax on an item that is imported

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tariff

Front

this are created for political reasons to slow down trade: tariff, quota, embargo

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political trade barriers

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The percentage of a country's people who can read and write

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literacy rate

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sun, wind, water, oceans, rivers, gifts of nature, and mineral resources available in an area

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natural resources

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these are the "tools" used to produce: tools, equipment, buildings, machinery, factories

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capital goods

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the knowledge and skills a worker gains through education and experience

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human capital