Vocabulary
What do you call a system of money in general use in a country?
Currency
What is opportunity cost?
When you give something up in order to get something else. (making choices)
This economy is often found in developing countries; they depend mostly on farming/herding and trading goods with one another.
Traditional
What do countries do in order to ger the resources they need?
Trade
What type of economy does the United States have?
Mixed
Banning trade with another country
Embargo
3 examples of renewable resources
Answers will vary
What type of economy does the production and distribution is controlled by a central authority or government?
Command
What is the main goal of an economy?
sustainability
What is a quota?
Setting a limit on how much of a product can be brought in or shipped out.
The exchange for other goods or services without using money.
Bartering
Give me 5 examples of Capital
Answer will vary
Which economy relies on private businesses owners, supply & demand, lots of competition and little (or no) government involvement?
Market
Why do countries use tariffs?
To persuade people to buy products made in their own country
Tell me 3 examples of Non-Renewable Resources
Answers will vary
What is the difference between an Import and an Export?
An import is when a good comes into a country form another country, an export is when a country sends a good to another country
What are the 3 basic economic questions?
What should be produced?
How should it be produced?
How should the product be distributed?
In which type of economy does the government help out by safeguarding the markets and helping to keep people safe?
Mixed
What are the four factors of production?
Capital, Land, Labor, and Entrepreneur
What is the level of wealth, comfort, material goods and necessities available to a certain group of people in a country?
Standard of Living
When a group of countries who trade with each other; set few or no tariffs and/or quotas
Free trade
What is the difference between a good and a services. Provide an example of each.
Answers will vary.
Which economic system is this? And how do you know?
Rosa wants to open a new hair salon. In order to make money she is planning on charging her customers $30 for a hair cut. However before she can open, the building inspector told her that she needs to move the sinks away from the exposed outlet.
Mixed, Rosa decided to open the business as well as the service it would provide and at what cost (Market). However she has to follow certain safety guidelines that the government puts in place to avoid a fire. (command) Therefore it is a mix.
Why do people have to make choices?
We have limited supply and unlimited demand.