Economic Systems
This system is based on private ownership and profit.
Capitalism
Trading goods and services without money.
Barter
Total money earned before taxes and deductions
gross
A tax placed on imported goods
Tariff
A naval blockade, like the one involving Iran, is designed to do this to a country’s economy.
cut trade, limit imports and exports
In this system, the government owns most businesses and resources.
Communism
Choosing one thing over another due to limited resources.
Trade-off
Money earned after taxes and deductions.
net income
A penalty or restriction placed on a country to influence behavior.
sanction
Tensions involving Iran in the Strait of Hormuz matter globally because a large percentage of this resource passes through the region.
Oil
This type of economy is controlled entirely by the government.
Command Economy
The study of individual consumers and businesses.
Microeconomics
A general increase in prices over time.
inflation
Government payments to support businesses or industries.
subsidies
The government of Venezuela has faced economic collapse largely due to its reliance on this one major export.
Oil
This system combines elements of government control and free markets.
Mixed Economy
The value of the next best alternative you give up
opportunity cost
The U.S. central banking system that controls money supply.
Federal Reserve
Tariffs are meant to protect these from foreign competition.
Domestic industries
New York’s “Tier 6” pension system requires public workers to contribute more of their paycheck for this future benefit.
pension
The Germany's is best described as this type of economy.
Mixed Economy
Land, labor, and capital are examples of these.
Factors of production
When inflation rises, the purchasing power of money does this.
Decreases
Sanctions are often used as a tool of this type of policy.
Foreign Policy
One major reason for the housing shortage in New York is
low supply