Southwest Asia Economics Vocabulary

Traditional Economy

•  A government planning group makes most of the economic decisions for the people. 
• Based on customs and on the habits of how decision were made in the past. 
• Economic decision are made by individuals who decide what to produce and what to buy. 
• Has characteristics of both a market and command economy. 

Gross Domestic Product

• When a country announces that it will no longer trade with another country in order to isolate and cause problems with that country's economy. 
• Knowledge and skills that make it possible for workers to earn a living. 
• The value of all the final grade and services for workers to earn a living. 
• Factories, machines, and technology that people use to make products to sell. 

Entrepreneurs

• Factories, machines, and technology that people use to make products to sell. 
• Creative, original thinkers who are willing to take risks to create a new businesses and products. 
• Organization of Petroleum Exporting Countries founded to set oil prices and policies. 
• A system of changing from one type of currency to another. 

Command Economy

•  A government planning group makes most of the economic decisions for the people. 
• Based on customs and on the habits of how decision were made in the past. 
• Economic decision are made by individuals who decide what to produce and what to buy. 
• Has characteristics of both a market and command economy. 

Specialization

• A limit on the amount of foreign goods that can come into a country. 
• Anything that slows downs or prevents one country from exchanging goods with another. 
• A tax placed on goods when they are brought into one country from another country. 
• Products a country makes best that are demand on the world market. 

Mixed Economy

•  A government planning group makes most of the economic decisions for the people. 
• Based on customs and on the habits of how decision were made in the past. 
• Economic decision are made by individuals who decide what to produce and what to buy. 
• Has characteristics of both a market and command economy. 

Quota

• A limit on the amount of foreign goods that can come into a country. 
• Anything that slows downs or prevents one country from exchanging goods with another. 
• A tax placed on goods when they are brought into one country from another country. 
• Products a country makes best that are demand on the world market. 

Embargo

• When a country announces that it will no longer trade with another country in order to isolate and cause problems with that country's economy. 
• Knowledge and skills that make it possible for workers to earn a living. 
• The value of all the final grade and services for workers to earn a living. 
• Factories, machines, and technology that people use to make products to sell. 

Tarriff

• A limit on the amount of foreign goods that can come into a country. 
• Anything that slows downs or prevents one country from exchanging goods with another. 
• A tax placed on goods when they are brought into one country from another country. 
• Products a country makes best that are demand on the world market. 

Capital Goods

• When a country announces that it will no longer trade with another country in order to isolate and cause problems with that country's economy. 
• Knowledge and skills that make it possible for workers to earn a living. 
• The value of all the final grade and services for workers to earn a living. 
• Factories, machines, and technology that people use to make products to sell.