Economic Systems and Trade Vocabulary

The definition of Economy is:

• The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.

• A system of government in which priests rule in the name of God or a god.

• A large natural stream of water flowing in a channel to the sea, a lake, or another river.

• A place where people live, work, and interact with each other.

Tags

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.6.4

CCSS.RI.7.4

CCSS.RI.8.4

What is a Traditional Economy?

• An economy based on customs and traditions

• An economy driven by technology and innovation

• An economy with no government intervention

• An economy focused on global trade

A command economy is defined as:

• An economic system where supply and demand determine production and prices.

• An economic system where the government makes all decisions regarding the production and distribution of goods and services.

• An economic system based on customs, history, and time-honored beliefs.

• An economic system where private individuals own and control production.

What is a Market Economy?

• An economy where supply and demand determine prices and production.

• An economy controlled by the government.

• An economy based on barter system.

• An economy with no private ownership.

Explain Mixed Economy.

• A system combining private and public enterprise.

• A system with only private enterprises.

• A system with only public enterprises.

• A system with no government intervention.

Scarcity means:

• abundance of resources

• limited availability of resources

• unlimited wants

• excess supply

The relationship between Supply and Demand is:

• Supply always equals demand.

• Supply and demand are inversely related.

• Supply and demand are directly related.

• There is no relationship between supply and demand.

Define Private Sector.

• A sector owned and operated by the government.

• A sector owned and operated by private individuals or companies.

• A sector that is a mix of government and private ownership.

• A sector that is not involved in economic activities.

The Public Sector is:

• a part of the economy that is controlled by the government.

• a part of the economy that is controlled by private individuals.

• a sector that deals with agriculture and farming.

• a sector that focuses on technology and innovation.

Voluntary Trade is a type of trade where:

• both parties expect to gain from the exchange.

• only one party benefits from the exchange.

• neither party benefits from the exchange.

• the government dictates the terms of the exchange.