Economics Terms

someone who brings together land, labor, and capital goods to produce goods and services.

• Entrepreneur

• human capital

Monetary value of all the finished goods and services produced within a country's border.

• Gross Domestic Product

• Scarcity

The level of wealth, comfort, material goods, and necessities available in a certain area.

• standard of living

• physical capital

resources such as factories, machinery, and tools that people use to make other goods

• Physical capital

• trade barrier

Money used as a form of exchange, paper money

• currency

• exchange rate

a limit on the amount of a product that may be imported during a given period of time

• tariff

• quota

physical or political restrictions on trade, limits free trade between countries

• trade barrier

• quota

an exchange of goods without the use of tariffs or quotas with a certain boundary. (European Union)

• Free Trade Zone

• Mixed Economy

an economic system in based on individual choices and voluntary trade.

• mixed economy

• market economy

an economic system in which social roles and culture determine how goods are made sold and bought.

• traditional economy

• command economy