why trade?
what is trade?
Voluntary trade occurs when different
countries choose to engage in the
exchange of goods with one another.
what does specialization mean?
the process of concentrating on and becoming expert in a particular subject or skill
what is the trade barrier that put an limit on things?
quota
What are the three questions that every country must answer when developing its economic plan?
What goods/services will be produced?
How will goods/services be produced?
Who will consume the goods/services?
voluntary trade occurs between two countries when they are engaged in what?
exchange of goods
why specialization important?
Specialization is an efficient way to work,
and the cost of items produced is lower.
what is it called when they put tax on imported goods?
tariff
Which economic system is this?
All economic decisions are based on customs, traditions, & beliefs of the past.
Traditional
why do countries trade?
because no country has all resources they need
due to countries s not being able to produce in all goods/ service, they specialize in _____________?
what they do best
what is it when they put an banned?
embargo
Which Economic system is this?
All economic decisions are made by the Government
Command
No country has all the resources to do what?
no country
has all the resources necessary to
produce every single thing its people need.
Specialization is an _____ ___ __ _____, and the cost of items produced is lower
efficient way to work
what is a trade barrier?
Trade barriers are natural or man-made obstacles to
voluntary trade.
Which economic system is this?
Economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place
Market
why is voluntary trade good for countries?
Voluntary trade is good for countries
because it lets a country sell its own
resources and buy the resources it needs.
why does specialization increase trade?
because a country can get what it needs at the lower cost
what do natural trade barriers include?
mountain ranges , deserts, rain forests, or lack of access to bodies of water
Since there are no countries that are purely command or purely market, what does that make them?
Mixed