Economics of Europe

In this type of economic system, the government makes all the decisions.

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

Answer explanation

§Government makes all economic decisions & owns most of the property

§Governmental planning groups determine such things as the prices of goods/services & the wages of workers

What is a traditional economy?

• In this type of economic system, the government would not be involved at all.

• In this type of economic system, businesses own most resources and determine what and how to produce, but the government regulates certain industries.

• In this type of economic system, the government makes all economic decisions & owns most of the property.

• In this type of economic system, people follow their customs or traditions and make what their ancestors made.

Answer explanation

A traditional economy decides what to produce based off tradition - the same thing is produced generation after generation.

In this type of economic system, businesses base decisions on supply and demand and free enterprise.

• Market Economy

• Mixed Economy

• Traditional Economy

• Command Economy

A term used in a traditional economy that means "to trade"

• Embargo

• Barter

• Tariff

• Quota

This type of economic system is found in MOST COUNTRIES where businesses decide what to produce

• Command Economy

• Traditional Economy

• Mixed Economy

• Market Economy

Taxes on imported goods

• Barter

• Embargo

• Tariff

• Quota

This puts a limit on the quantity of goods that are imported

• Barter

• Quota

• Tariff

• Embargo

Answer explanation

A Quota only allows a certain Quantity into the country.

This is a complete ban on trading between countries. It is also the HARSHEST type of trade barrier.

• Barter

• Tariff

• Quota

• Embargo

What is free trade?

• A barrier that hinders of gets in the way from two nations trading with each other.

• A physical barrier that hinders or gets in the way of two nations trading with each other.

• Nothing hinders or gets in the way from two nations trading with each other.

Trade is difficult because things get in the way. This is called ___________ ___________.

• Tariff

• Trade Barrier

• Embargo

• Quota