Economic Terms

Economic decisions are based on customs and beliefs of the past; Uses bartering to exchange goods

• Traditional Economy

• Market Economy

• command economy

• mixed economy

Government makes all economic decisions

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Private businesses & individuals make all economic decisions without government interference; Works on supply & demand; U.S. is close to being pure in this economy

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

command and market systems; most democratic nations have this type of economic system

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

The products that a country makes best and that are in demand on the world market

• specialization

• tariff

• quota

• embargo

Tax placed on imported goods

• specialization

• tariff

• quota

• embargo

A limit on the amount of goods a country will import

• specialization

• tariff

• quota

• embargo

A complete ban on trading, usually for political reasons

• specialization

• tariff

• quota

• embargo

Changing from one type of currency to another in order to purchase goods across the world market

• currency exchange

• Gross Domestic Product (GDP)

• human capital

• capital goods

Measures a country’s economy; All of the goods and services produced within a country in 1 year

• currency exchange

• Gross Domestic Product (GDP)

• human capital

• capital goods