Unit 1 Vocabulary Review

What is an economic system where the government controls all aspects of production and distribution?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

What is an economic system where the production and distribution of goods and services are determined by supply and demand?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

What is an economic system that combines elements of both command and market economies?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

What is an economic system that relies on customs, traditions, and cultural beliefs to determine production and distribution?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

What is the condition of limited resources and unlimited wants?

• Scarcity

• Wants and Needs

• Globalization

• Interdependence

What are desires that can be satisfied by consuming goods or services?

• Scarcity

• Wants and Needs

• Globalization

• Interdependence

What is the process of increasing interconnectedness and interdependence among countries?

• Scarcity

• Wants and Needs

• Globalization

• Interdependence

What is the mutual reliance and dependence of countries on each other?

• Scarcity

• Wants and Needs

• Globalization

• Interdependence

What is the exchange of goods and services between countries?

• Trade

• Comparative Advantage

• Favorable Balance of Trade

• Unfavorable Balance of Trade

What is the ability of a country to produce a good or service at a lower opportunity cost than other countries?

• Trade

• Comparative Advantage

• Favorable Balance of Trade

• Unfavorable Balance of Trade