Economics Vocabulary Review

A community of people living a particular region and having shared customs, laws, and organizations.

• Society

• Specialization

• Embargo

Most of the economic decisions are made based on customs and the habit of how such decisions were made in the past.

• Market Economy

• Command Economy

• Traditional Economy

The government planning groups make most of the basic economic decisions.

• Market Economy

• Command Economy

• Traditional Economy

One in which society's economic decisions are made by individuals.

• Market Economy

• Command Economy

• Traditional Economy

Located on a continuum between a pure market and a pure command economy.

• Market Economy

• Command Economy

• Mixed Economy

Both parties in the transaction see that they will be able to gain something from the exchange; ideally there is no government restriction or regulation, either between individuals or countries.

• Voluntary Trade

• Tariff

• Embargo

Products a country makes best and are in demand on the world market.

• Specialization

• Quota

• Capital Goods

Anything that slows down or prevents one country from exchanging goods with another country.

• Tariff

• Trade barriers

• Protective Tariff

A tax placed on goods when they are imported (brought into one country from another country.)

• Tariff

• Quota

• Currency Exchange

Makes the imported item more expensive than a similar item makes locally.

• Protective Tariff

• Tariff

• Quota