đ Tip-Off â Economic Systems
Every country must answer these three âplay-callingâ questions: What to produce? How to produce? and ____?
What is For whom to produce?
These are the âplayersâ on an economic team: human capital, capital goods, and _____.
What is entrepreneurship
Trading between countries is like teams swapping playersâit helps both improve. What is this called?
What is global trade
This trade barrier is like a âfoulâ that adds an extra cost (tax) on imported goods.
What is a tariff
This is the amount of goods available, like the number of tickets to a big game.
What is supply
In this economy, the âcoachâ (government) calls every play and decides production.
What is a Command Economy
When a country invests in education and training for its workers, itâs improving this âplayer stat.â
What is human capital
When a country focuses on what it does best, like a player specializing in free throws, thatâs called what?
What is specialization
This trade barrier is like a roster limitâonly a certain number of goods can enter the country.
What is a quota
This is how much fans (consumers) want those tickets or goods.
What is demand
In this economy, the âplayersâ (citizens and businesses) make their own choices based on supply and demand.
What is a Market Economy
When a team buys new equipment to improve performance, itâs investing in these.
What are capital goods
A country that buys goods from others makes an ____, while one that sells goods makes an ____.
What is import / export
This barrier is like banning a rival team completelyâno trade allowed!
What is an embargo
When a team doesnât have enough players or resources to meet demand, it faces this.
What is scarcity
This economy uses âold-school playsâ passed down from generation to generation.
What is a Traditional Economy
This total scorecard measures how much a country produces in goods and services each year.
What is Gross Domestic Product (GDP)
Countries depend on one another for goods, just like teams rely on teammates. This is called what?
What is interdependence
Why might a country set up trade barriers, just like a coach limits outside players?
What is to protect domestic businesses or for political reasons
These are the ânatural advantagesâ of a countryâits land, water, and minerals.
What are natural resources
Most countries today are like teams using a mix of strategies from both the coach and players.
What is a Mixed Economy
Countries with high literacy rates usually have a higher one of these âleague rankings.â
What is standard of living
Why do countries need an âexchange rateâ system when trading internationally?
What is to trade money between different currencies
Compare tariffs, quotas, and embargoesâlike different defensive strategies.
What is tariff = tax, quota = limit, embargo = total ban
Describe how entrepreneurs are like team owners in an economy.
What is they take risks, invest resources, and create new opportunities