Economy Types
The type of economy is determined by how these questions are answered.
What are the 3 economic questions?
These are things the government does to slow down or stop trade with another country.
What are Trade Barriers?
Money
What is Currency?
Things that contribute to the growth of the economy.
What are Factors of Economic Growth?
The percentage of a country's population over 15 years old who can read and write.
What is Literacy Rate?
Everything you make is going to be the same thing that your parents made, the same way they made it, and for your local village. You barter for everything you have and need.
What is Traditional Economy?
Tax on imported goods.
What is a tariff?
Trading one country's currency for another's.
What is currency exchange?
Training, knowledge, education, and experience that workers have.
What is Human Capital?
Gross Domestic Product.
What does GDP stand for?
The three economic questions are answered based on what people want to produce and what they want to buy. The government has nothing to do with this economy.
What is a Market Economy?
Limit on the amount of a product that can be imported in one year.
What is a quota?
The value of one country's currency compared to another's.
What is Exchange Rate?
Products that companies use to produce their goods.
What are capital goods?
Value of all goods and services produced in a country in one year.
What is Gross Domestic Product (GDP)?
All three of the economic questions are answered by the government. Government owns everything and has absolute control over everything in the economy.
What is a Command Economy?
Stops trade completely with another nation.
What is an embargo?
What are imports?
Things that are found in nature that we use to make things.
What are Natural Resources?
per person
What is per capita?
A mixture of both a market and command economy.
What is a Mixed Economy.
Makes trade illegal for its citizens.
What is an Embargo?
Goods sent to another country.
What are exports?
People who risk their time and money to start a new business, invent a new product, or develop a new, more efficient way to do something.
What are entrepreneurs?
More accurate metric to compare the economies of two or more countries.
What is GDP per capita?