Types of Economic Systems
What is a Mixed Economy?
A mix of Market and Command Economies.
What is Germany's Economy sometimes called?
A Social Market Economy.
What does a quota do?
A quota limits the quantity of an imported product.
True or False: There are only a few countries/nations in the European Union.
False
How do countries have higher standards of living?
By having high literacy rates, strong investments in workers, and abundant natural resources.
Why is there little change or innovation in a Traditional Economy?
Because they do the same things their ancestors did many years ago.
Which country out of Germany, Russia, and the U.K. is the most Government Controlled (Command Economy)?
Russia
Why do countries trade?
Because they can't produce everything they need.
Why does the European Union exist?
To make trade easier for the people in Europe.
What are Capital Resources?
Capital Resources are machines, factories, and tools.
What does the Government control in a Command Economy?
What is produced, how much is produced, the price of what is produced, and who gets it.
What does Russia's Government control?
Prices, what is produced, who gets it, and many large industries such as gas and oil.
What is a tariff?
A tariff is a tax on imported goods that rises prices and discourages trade.
What have European Union countries done?
They have removed tariffs and created a free trade zone.
What is Human Capital?
Human Capital is the education, training, and health of workers.
Who controls prices on items in a Market Economy?
Buyers and Sellers
What does the Government do for the U.K. Economy?
The Government only steps in when necessary to keep things fair and safe.
What must a country do when trading internationally?
They must use currency exchange.
How do European Union nations make trade faster and more convenient?
They make trade faster and more convenient by all using the same currency, the Euro.
What are Natural Resources?
Natural Resources are things like oil, minerals, water, and fertile land.
What is a Market Economy based on, and lets the people control prices?
Supply and Demand
How does Germany balance their little economic freedom from being a more command economy?
By giving social protections.
What does Specialization mean?
It means that a country has a lot of a certain good or produces a certain good quickly and cheaply to sell for more expensive goods.
What is the main goal of the European Union?
What is Entrepreneurship?
Entrepreneurship is people who start businesses and create new ideas.