Government and Economy vocabulary terms

Which type of economic system is people making and growing their own food?

• Market

• Command

• Traditional

• Mixed

A trade barrier in which one country announces that it will no longer trade with another country in order to isolate and cause problems with that country's economy; a ban on trade.

• embargo

• tariff

• quota

• subsidy

What is specialization?

• a country's main focus when producing an export

• the process of diversifying production to reduce risk

• a method of increasing competition in the market

• the ability to produce goods at a lower cost than others

What is a market economy?

• A system where the government controls all businesses

• A system with little government regulation allowing citizens to own their own business

• A type of economy where prices are set by the government

• An economy that relies solely on barter and trade

The knowledge and skills that make it possible for workers to earn a living producing goods and services; the value a person brings to the workplace.

• human capital

• social capital

• financial capital

• natural capital

In a command economy, who usually owns the farms and factories?

• The government

• Private individuals

• Cooperatives

• Foreign investors

___________ is government power where a select few individuals are in control.

• Democracy

• Oligarchy

• Monarchy

• Theocracy

______ is the system by which a country is organized.

• Economy

• Government

• Society

• Culture

In which economic system do consumers make economic decisions based on changes in prices that occur between buyers and sellers?

• Market

• Command

• Traditional

• Mixed

Most countries in the world, including the US, use what economic system?

• Capitalism

• Socialism

• Mixed

• Communism