Vocabulary
A trade barrier that places a tax on imported goods.
What is a tariff?
An economic system that is driven by consumers’ buying decisions.
What is a market economy?
The name of the common currency of the European Union.
What is the Euro?
An international union of 27 European countries to help establish peace, free-trade zone, and a common currency.
What is the European Union?
The factories, machinery, and technology that are necessary to run a service or industry.
What are capital goods?
The total value of goods and services produced in a country in a year.
What is GDP?
An economic system that is based on culture, traditions, and rituals.
What is a traditional economy?
The approximate value of one nation’s currency when compared with another country’s.
What is currency rate?
This is the common currency of the European Union.
What is the Euro?
Those who risk their own money and resources to create a new business or service.
What is an entrepreneur?
The percent of a nation’s population over the age of 15 who can read and write.
What is literacy rate?
An economic system that relies on the government to make all economic decisions.
What is a command economy?
The approximate value of one nation’s currency when compared with another country’s.
What is exchange rate?
What is standard of living?
The knowledge, skills, and health of a nation’s labor force; invest in it with education and job training.
What is human capital?
The level of wealth and material comfort available to a person.
What is standard of living?
An economic system with limited government involvement and driven by consumers’ buying needs.
This is necessary to trade the currency of one country for the currency of another as accurately and fairly as possible.
What is currency exchange?
This allows free movement with no tariffs on goods, services, and people in a single market.
What is a free-trade zone?
A country invests in capital goods and human capital to help raise the ____ of the country.
What is the GDP?
Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.
What is specialization?
What to produce? How to produce? For whom to produce?
What are the three questions economic systems have to answer?
A market where buyers and sellers have the right to trade freely.
What is voluntary trade?
This is when someone lives in a very low standard of living mainly due to a low literacy rate.
What is poverty?
What is GDP per capita?