Economic Vocabulary

What is a market economy?

• An economic system based on individual choices and voluntary trade

• An economy that features one or more of the economic systems

What are the characteristics of a traditional economy?

• An economy that features one or more of the economic systems

• An economy that values traditions and produces a limited quantity

A command economy is...

• An economic system based on individual choices and voluntary trade

• An economic system in which the government owns some of all of the factors of production

In a mixed economy you would have...

• An economy that features one or more of the economic systems

• An economic system in which social roles and culture determine how goods are made, sold, and bought

What would be a good definition for scarcity?

• A fee charged for goods or services brought into a state or country (imports)

• The economic problem of having unlimited human wants in a world of limited resources

What is a trade barrier?

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

• Physical or political restrictions on trade; limits free trade between countries

A tariff is described as...

• Any restriction put on trade (imports or exports) by law; usually backed by military force

• A fee charged for goods or services brought into a state or country (imports)

If there was a Quota on lap tops, what does that mean...

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

• Any restriction put on trade (imports or exports) by law; usually backed by military force

Embargo is....

• Money used as a form of exchange; paper money

• Any restriction put on trade (imports or exports) by law; usually backed by military force

A free trade zone would be....

• An exchange of goods without the use of tariffs or quotas within a certain boundary (European Union)

• An economic system based on individual choices and voluntary trade