Factors of Production
How available something is.
What is Supply?
The people who buy and use goods and services.
Who are Consumers?
This keeps prices low and increases the quality of goods and services.
What is Competition?
The exchange of goods and services.
What is Trade?
The removal of trade barriers between countries to stimulate trade.
What is Free Trade?
How much something is wanted or needed.
What is Demand?
They make and sell goods and services.
Who are Producers?
Money earned after taxes.
What is Income?
Trade between producers and consumers in the same country.
What is Domestic Trade?
A tax on imports and sometimes exports.
What is a Tariff?
The factor of production that includes work and workers.
What is Labor?
An economy based on customs and values, often with a low standard of living.
What is a Traditional Economy?
Money spent on wants and needs.
What are Expenses?
Trade between producers and consumers in different countries.
What is Foreign Trade?
A limit on imports.
What is a Quota?
The factor of production that includes a location and natural resources.
What is Land?
An economy based on freedom and competition that encourages progress.
What is a Market Economy?
A plan to keep income greater than or equal to expenses.
What is a Budget?
Obstacles to trade used to reduce unfair competition.
What are Trade Barriers?
A complete ban on trade with a country.
What is an Embargo?
The factor of production that includes money and man-made resources.
What is Capital?
An economy in which the central government makes all the economic decisions, creating a more even spread of wealth but a lack of competition and motivation.
What is a Command Economy?
Money borrowed that has to be repaid with interest.
What is Credit?
What a country is good at producing due to its available resources and the skills and values of its citizens.
What is Comparative Advantage?
Countries with strong economies and high standards of living.
What are Developed Countries?