Vocabulary
A tax placed on imported goods.
Tariff
List one example of a natural trade barrier.
Desert
Rain Forest
Mountain Ranges
Saudi Arabia, Israel, and Turkey all share this type of economy.
Mixed Economy
People who provide the money to start and operate a business.
Entrepreneurs
What is the difference consumers and producers?
Producers - those who produce a good
Consumers - those who purchase a good
A trade barrier in which a country refuses to trade with another country.
Embargo
Why is voluntary trade important?
It allows countries to trade other countries for goods/services that each other need.
All economic decisions are based on customs, traditions, and beliefs of the past in this type of economy.
Traditional Economy
The skills, talents, education, and abilities that human workers possess.
Human Capital
This country produces millions of barrels of oil daily.
Saudi Arabia
A system of changing from one currency (money) to another.
Exchange Rate
List the two purposes for the OPEC organization.
Set oil prices
Set limit on amount of oil produced by a country
Technology, tourism, and military defense is the main three economic investments for this country.
Israel
List two examples of capital goods.
Machinery
Tools
Factories
Computers
Economic decisions are made based upon the changes in prices that occur as buyers and sellers interact in the marketplace.
Market Economy
An economy in which a government makes all economic decisions.
Command Economy
Define quota.
A limit of the amount of goods that can be imported into a country.
A mixed economy shares these two types of economies.
Command and Market
List the 4 factors of production.
Natural Resources
Capital Goods
Human Capital
Entrepreneurship
What are the three types of economies?
Command, Market, Traditional
The value of all goods and services produced within a nation in a given year.
Gross Domestic Product (GDP)
Explain what specialization is.
Allows countries to specialize in making certain goods/products and trading them to other countries for goods/products that those countries specialize in.
What are the three economic questions that every country must answer when developing its economic system?
1. What good/service is being produced?
2. How will good/service be produced?
3. Who will consume the goods/services?
Why should countries invest in developing capital goods?
The more capital goods a country has, the more goods a country can produce.
What does OPEC stand for?
Organization of the Petroleum Exporting Countries