Unit 1 Vocab Practice 25-25

Standard of Living

• The way a country organizes its economy

• How well people live and have their needs met

• The percentage of people who can read and write

• How much of something can be brought into a country

Confederation

• A loose group of smaller governments that join together

• A government with one main authority

• A group of people who start businesses

• A law-making branch of government

Mixed

• A type of economy based only on customs and beliefs

• A type of economy where the government controls everything

• A type of economy with both private businesses and some government control

• An economy based only on supply and demand

Command Economy

• People decide what to make and sell

• The government decides what to make, how, and for whom

• Trade between two countries

• A system with no government control

Specialization

• Trading goods without using money

• Focusing on making one type of good or service very well

• The total value of goods a country makes in one year

• The health and education of a country’s people

Literacy Rate

• The number of schools in a country

• The percentage of people who can read and write

• The number of libraries in a country

• The number of students who graduate

Market Economy

• The government owns all businesses

• Businesses and people decide what to make and sell

• People trade goods without money

• Businesses produce only what the government orders

Traditional Economy

• People make and trade goods the same way their ancestors did

• An economy based on government control

• An economy focused only on exports

• A system of banks that sets interest rates

Embargo

• A tax on imported goods

• A rule that stops all trade with another country

• A limit on imports

• An agreement to trade freely

Currency Exchange

• Trading goods without money

• Changing one country’s money into another’s

• A tax on exports

• A type of investment