Specialization and Barriers
What is it called when two countries completely stop trade with each other?
Embargo
Does the government have a lot of control in this economy?
No
How much citizen participation is enabled in this economy?
Little to none
Can business owners choose what to produce in this economy?
Yes
What currency do almost all European countries use to make it easier to trade?
What is a tariff?
A tax on imported goods from another country.
How do citizens get their food in this economy?
Hunting, gathering, and trading.
How does the government limit personal freedom when owning a business?
They decide what to produce, how to produce it, and how much to sell it for.
Is this economy an example of supply and demand?
Yes
How many countries are in the E.U.?
27
What is a limit on the quantity of imported goods?
A quota
What does trade heavily rely on this economy?
Barter
Are land and businesses privately owned in this economy?
No
Who chooses what to supply in this economy?
The owner(s) of the business.
How does the Euro help the European countries trade easier?
It makes trade faster and more convenient.
Explain trade specialization in one sentence.
When countries make only what they can produce cheaply and efficiently.
How do the citizens in this economy learn what to do and how to do it?
Their relatives teach them
Almost every family in a traditional economy has a different job.
Who owns land in this economy?
The government
How much government control does this economy have?
Little to none.
When did the E.U. start?
1993
A tariff, quota, and embargo are all examples of what?
Trade barriers.
What US state is an example of this economy?
Northern Alaska.
What prevents inflation in this economy?
The government sets the prices.
There is no supply and demand.
What is inflation?
When prices rise due to the demand of a certain product.
What does the E.U. encourage?
Economic cooperation and free trade.