Questions
What is the economic system of U.K?
Mixed Market Economy - Mixed economy that leans heavily in towards the Market Economy.
What is the economic system of Germany?
Social Market Economy - Mixed Economy that leans slightly towards the Command Side.
What is the economic system of Russia?
Mixed Command Economy - Mixed Economy that leans slightly towards the Command Side.
What is the European Union?
A union in Europe which encourages both economic cooperation and free trade.
What is a Tariff?
A tariff is a tax on any trade
What is an Embargo?
An Embargo stops trade with another country
What is a Quota?
A quota is the limit of an item that can be traded with another country.
What does it mean to specialize in something?
It means to have something nobody else has or if you have more of something. Some examples are:
India - Spices
Saudi Arabia - Oil
Germany - Automobiles and Engineering
What are the 3 main questions that people ask when it comes to selling goods?
What to produce?
How to produce?
For whom am I producing for?
What are the 3 + 1 Economic types?
Traditional, Market, and Command (3)
+
Mixed - (Market + Command) (1)
No country has a pure Market or Command economy.
Why is currency exchange important?
This allows people in one country to pay for goods using the currency of another country.
What is the main goal of the European Union?
This allows people in one country to pay for goods using the currency of another country. They created a free trade zone. 27 countries are part of the European Union.
Many EU countries use the Euro. Why?
It makes trade faster and more convenient.
What are the Factors of Production and Living Standards?
Human capital: the education, training, and health of workers
Capital resources: machines, factories, tools
Natural resources: oil, minerals, water, fertile land
Entrepreneurs: people who start new businesses and create new ideas
What type of countries tends to have a higher living standard?
Countries with high literacy rates, strong investments in workers, and abundant natural resources tend to have a higher standard of living.
Europe has high literacy rates, which helps its economies grow. Entrepreneurs also help Europe’s economies by creating jobs, increasing a country’s GDP, and introducing innovations that support long-term growth.