Economic Systems
👉 What is a traditional economy?
This system is based on bartering and no cash.
👉 What is a tariff?
A tax placed on imports.
👉 What is NAFTA/USMCA?
This agreement reduced trade barriers between the U.S., Mexico, and Canada.
True or False: You can use U.S. dollars everywhere.
👉 What is false?
Tools, machines, and technology used to produce goods.
👉 What are capital resources?
👉 What is a market economy?
In this system, businesses make production decisions.
👉 What is a quota?
A limit on how many goods can be imported.
👉 What is to increase trade and cooperation?
Main goal of NAFTA.
Why do countries exchange currency?
👉 What is to trade with different currencies?
Skills and knowledge of workers.
👉 What is human capital?
👉 What is a command economy?
In this system, the government controls production.
👉 What is an embargo?
A complete stop of trade between countries.
👉 What is trade increases?
What happens when tariffs are eliminated?
The value of one currency compared to another.
👉 What is exchange rate?
Natural “gifts” like water, sunlight, and land.
👉 What are natural resources?
👉 What is a mixed economy?
This system combines government control and free market.
Why would a country use an embargo?
👉 What is for political reasons or conflict?
How does USMCA help businesses?
👉 What is easier and cheaper trade between countries?
1 peso = 0.3 reals is an example of this.
👉 What is an exchange rate?
Why do countries specialize?
👉 What is to produce goods efficiently and trade?
👉 What is a market economy?
This system gives people the MOST choices.
👉 What is slow down or limit trade?
What do tariffs and quotas BOTH do (but not embargoes)?
Cause: NAFTA/USMCA
Effect: ______
👉 What is increased trade and lower prices?
If a currency becomes weaker, what happens to imports?
👉 What is they become more expensive?
Correct the statement:
“A country produces what it makes poorly.”
👉 What is produces what it makes BEST?