Economics of SW Asia Vocabulary

Which of the following is NOT a basic economic question?

• What to produce?

• How to produce it?

• When to produce it?

• For whom to produce it for?

To make a living based on what their ancestors have done

• Traditional economy

• Command economy

• Market economy

• Mixed economy

A central authority, usually a government, decides the answers to the basic questions of economics.

• Traditional economy

• Command economy

• Market economy

• Mixed economy

Private citizens are allowed to open businesses for themselves and free to make decisions on the three questions for themselves.

• Traditional economy

• Command economy

• Market economy

• Mixed economy

People are allowed to own private businesses, but government regulates businesses and industries sometimes a lot, sometimes a little.

• Traditional

• Command

• Market

• Mixed

Someone who begins and finances a new business or industry, e.g. Mark Zuckerburg and Facebook

• Entrepreneur

• Service Industry

• Diversification

• Specialization

Providing a service rather than a product to sell

• Entrepreneur

• Service Industry

• Diversification

• Specialization

Having an economy that is based on more than one economic activity, people work in a variety of industries. e.g. Kindergarten teachers

• Entrepreneur

• Service Industry

• Diversification

• Specialization

Concentrating on one particular industry or product. e.g. middle school teachers

• Entrepreneur

• Service Industry

• Diversification

• Specialization

Something that causes trade between countries to slow down or stop

• Entrepreneurs

• Market Economy

• Specialization

• Trade Barriers