Unit 2: Economics Vocabulary

Produce those goods that a country can make most easily, so they can trade them for goods that cannot be produced locally.

• Specialization

• Organization

• Economics

• Human Capital

A tax on imported goods

• Tariff

• Quota

• Embargo

• Economics

A limit on the amount of goods that can be imported into the country is called?

• Tariff

• Quota

• Embargo

• Economics

A ban on trade with another country for economic or political reasons is known as?

• Tariff

• Quota

• Embargo

• Economics

The sum of all goods and services produced in a country in one year is called?

• Gross Domestic Product (GDP)

• Human Capital

• Capital Goods

• Natural Resources

Education, skills, and training that people (workers) possess.

• Human Capital

• Capital Goods

• Natural Resources

• Entrepreneurship

Factories, machinery, tools, and technology available to a country are known as?

• Human Capital

• Capital Goods

• Natural Resources

• Entrepreneurship

All economic decisions are made by the government.

• Command Economy

• Market Economy

• Traditional Economy

• Mixed Economy

All economic decisions are made by buyers (consumers) and sellers (producers).

• Command Economy

• Market Economy

• Traditional Economy

• Mixed Economy

All economic decisions are based on customs and habits from the past.

• Command Economy

• Market Economy

• Traditional Economy

• Mixed Economy