Economic Systems
System in which all economic decisions are made by the government.
Command System
The items and ideas exchanged between the Eastern & Western Hemispheres (Old World and New World).
Columbian Exchange
When countries buy and sell goods and services with each other.
International Trade
Vocabulary term for the way the world is now interconnected and sharing ideas, goods, and services.
Globalization
The study of how people use resources to fulfill unlimited needs and wants.
Economics
No government involvement in business.
Market System
When you have to make a choice, the item not chosen is known as this.
Opportunity Cost
Goods or services sold to a different country.
Export
Elon Musk is the co-founder of Tesla. What is another word for someone who owns and takes on the risk of business?
Entreprenuer
A miner, doctor, and farmer are examples of this factor of production.
Labor
Most governments operate under this type of economic system.
Mixed System
Amount of a good or service that businesses can provide.
Supply
To bring a product into a country to be sold.
Import
A deer is an example of which factor of production?
Land
Who or what answers the basic economic questions in a market economy?
The people, businesses, workers, etc.
Mary Ann sells government produced cars. At the end of the month Mary Ann must give all of the money she made back to the government.
Command System
Amount of a good or service that consumers are able and willing to buy.
Demand
A tax put on goods imported from other countries.
Tariff
Hammer and nails makes building a house easier and faster. What factor of production is a hammer and nail?
Capital
Who or what answer the basic economics questions in a mixed economy?
The people and the government.
Sam loves science and wants to become a doctor but he is learning how to make clay bricks like his father and grandfather
Traditional System
What are the 3 basic economic questions
What to produce, How to produce it, For whom to produce it for?
A restriction on the amount of a good that can be imported into country
Quota
Name the 4 factors of production.
Land, Labor, Capital, Entreprenuership
Give 3 benefits of trade barriers.
They protect homeland industries from competition.
They protects jobs.
They help provide extra income for the government.
They increase the number of goods people can choose from.
They decreases the costs of these goods through increased competition.