Economics Vocabulary

Economic system in which people make business decisions based on the law of supply and demand to decide what is produced/consumed and at what cost.

Economic system where the government is controlling what goods and services are being produced and distributed. Government makes all business decisions

Mixture of market & command economies. Businesses make economic decisions, but the government regulates them to make sure they’re safe/fair.

Based on customs and traditions of ancestors. Is historically Based on small scale economies.

(a)  

To trade without the exchange of currency

Demand for a product is high and supply is low = price goes up. Demand for a product is low and supply is high = price goes down (On sale!)

Gross Domestic Product- total amount of goods and services produced in a country in a given year

The total amount of goods and services produced in a country in a given year, divided by the population of that country.

Man-made item that helps make another product or perform a service

A job that provides a service or makes a good.