Economics Vocabulary Part 1
In this type of economic system, customs and elders determine what and how to produce. Resources are usually shared. This system uses bartering to exchange goods and services.
What is a traditional economy?
Government owns resources and controls production, prices, and wages. Shortages of consumer goods occur because government sets prices low and resources are often used for military goods.
What is a command economy?
To sell resources and goods to another country
What is an export?
This is what answers the three economic questions in a traditional economic system
What is tradition and elders?
These are the four economic systems
What are command, traditional, mixed, and market?
To bring resources and goods in from another country.
What is an import?
When you contribute money in order to make a profit
What is an investment?
Definition of profit
Money a business earns after all the expenses are met.
In these economic systems, there is little to no uncertainty
What are command and traditional economic systems?
The government answers the three economic questions in this economic system.
What is a command economy?
Using your resources effectively to produce.
What is productivity?
The definition of a tariff
What is a tax on an imported good?
A branch of knowledge or system concerned with the production, consumption, and transfer of wealth
What is economics?
A market economy does not provide this for all of the citizens.
What are basic services?
In this type of economic system, the government can become too large with too much regulation.
What is a mixed economy?
This is the definition of a market economy
What is when individuals own resources and determine what and how to produce; Prices and wages are determined by producer supply and consumer demand?
Example (state vocabulary term):Someone decides to increase their store hours and provide breakfast at their coffee shop to increase their profits.
What is profit motive?
The definition of inflation
What is increase in prices over a period of time?
These are the three economic questions
What is....
What is produced?
How is it produced?
For whom is it produced?
These two economic systems share the advantage of individual freedom
What is market and mixed economic system?
The definition of GDP and what it stands for (have to get both to receive full credit)
What is total value in dollars of all the final goods and services produced in a country; Gross Domestic Product?
This is an example of a country with a pure market economy
What is no country?
Definition of a mixed economy
Individuals own most resources and determine what and how to produce. Government regulates certain industries.
These are the four advantages of a market economy
What are....
1. Consumer satisfaction is high
2. individual freedom
3. can easily react on small day to day changes
4. People can respond to the economy right away
This disadvantage command and mixed economies have in common
What is lack of incentive