PASSWORD

Economics Vocabulary

RAW MATERIALS FROM NATURE USED TOPRODUCE GOODS. CAN BE RENEWABLE (HAS NOLIMIT, LIKE THE SUN’SENERGY) ORNON-RENEWABLE (LIMITEDSUPPLY, AS IN OIL).

NATURAL RESOURCES

HUMAN RESOURCES USED TO PRODUCE GOODS AND SERVICES

EXAMPLES:MANUAL LABOR - A WORKER BUILDS A CAR

MENTAL LABOR - A WORKER DESIGNS AN IDEA FOR A CAR

HUMAN CAPITAL

THIS SYSTEM REPEATS THE PAST

Uses old-fashioned methods and machinery

to produce and trade goods

TRADITIONAL

THIS SYSTEM HAS NO GOVERNMENT INTERVENTION

ALLOWS OWNERSHIP OF PRIVATE PROPERTY AND BUSINESSES

MARKET

THE GOVERNMENT CONTROLS EVERYTHIG IN THIS SYSTEM

SOMETIMES RESULTS IN LIMITED SUPPLY OF GOODS

CAN SLOW DOWN AN ECONOMY (SLOW GROWTH)

COMMAND

HAS ELEMENTS OF COMMAND & MARKET SYSTEMS (COMMON IN EUROPE), ALSO CANADA AND CHINA

MIXED SYSTEMS

MONEY-COINS AND BILLS

CURRENCY

A TAX ON IMPORTED GOODS

TARIFF

WHAT, HOW, AND FOR WHOM TO PRODUCE?

3 ECONOMIC QUESTIONS

A PERSON WHO STARTS UP A COMPANY, TAKES THE RISKS

ENTREPRENUER

LIMITS ON THE QUANITY THAT CAN BE IMPORTED

QUOTA

GOODS LEAVING,OR EXITING A COUNTRY

EXPORTS

TOTAL VALUE OF ALL GOODS AND SERVICES PRODUCED IN A COUNTRY IN A YEAR

GDP

NATURAL RESOURCES, CAPITAL GOODS, HUMAN CAPITAL, AND ENTREPRENEURSHIP

4 FACTORS OF ECONOMIC GROWTH

GOODS COMING INTO A COUNTRY

IMPORTS

THINGS THAT GET IN THE OF TWO NATIONS TRADING WITH EACH OTHER

TRADE BARRIES

BLOCKING GOODS FROM ENTERING A COUNTRY

EMBARGO

GDP DIVIDED BY THE COUNTRY’S POPULATION

PER CAPITAL GDP

THE END