Lesson 1
The system of producing, selling, and buying goods and services.
Economy
In this system you would probably inherit your mother or father's job.
Traditional
When you trade a good or service for a good or service provided by someone else.
Barter
The process in which countries are increasingly linked to each other through culture and trade.
Globalization
People's wants are _________, but the resources avaliable to satisfy their wants are____________.
Unlimited and Limited.
This is the economy that is controlled by the government. The government will decide on what goods and services to produce.
Command
the currency for Japan is
Yen
This refers to culture traits that are well known and widely accepted by the general population.
Popular Culture
It is the money an individual or business has left after paying expenses.
Profit
This system is were you would have the potential to make the most money.
Market
The three functions of money are
Medium of exchange, Store of Value, and Unit of Account.
is a relationship between countries in which they rely on one another for resources, goods, or services.
Interdependence
These are the 3 types of incentives
Profit, Saving Money, and Recieving Something Extra.
These countries are examples of a Communist economy, Socialist economy, and Capitalist economy.
Communist: China
Capitalist: Taiwan
Socialist: Sweden
To store, earn, and borrow.
What are the three trade barriers and how are they used.
Tariff: is a tax on imported goods.
Quota:is a limit on the amount being taxed.
Embargo: is a ban or restriction.
This happens when producers in one nation depend on others to provide goods and services that they don't produce.
Economic Interdependence
The Yanomamo are a South American Indian tribe living in spread out villages in the Amazon region of Brazil and Venezuela. The Yanomamo had no contact with outsiders until the middle twentieth century. The Yanomamo grow plantains and bananas for much of their food. They supplement this with hunting and gathering palm fruit. They meet their basic needs without outside contributions or trade. The fathers teach their sons how to hunt, the mothers teach their daughters to cook.
Traditional Economy
This is one risk that we see today with our money
Possible Answers:
Stock Investments
Inflation
Global trading is important because
It helps many countries around the world expand their economies