Unit 3 Economy Study GuideWho or what makes the decisions of what to produce, how to produce, and for whom to produce in a traditional economy?Customs handed down from generation to generationWho or what makes the decisions of what to produce, how to produce, and for whom to produce in a market economy?People. The rule of supply and demand usually guides the production of goods.Who or what makes the decisions of what to produce, how to produce, and for whom to produce in a command economy?governmentWhat kind of economy do most countries of the world have?Mixed economiesWhy are the economies considered to be mixed?Every economy has a certain amount of governmental control and certain amounts of personal freedom within the economy. What country has the greatest amount of economic freedom between Canada, Cuba, and Brazil?CanadaWhat country between Canada, Cuba, and Brazil has the government make the decisions of what to produce, how to produce, and for whom to produce goods?CubaWhat is the word that means a country does one or two things very well?SpecializationWhat economic activity is encouraged by specialization in countries?Trade

What does specialization require countries to be?InterdependentWhat is the term that means a tax on imported goods?TariffWhat is the term that means a limit on the amount of a product that can be imported?QuotaWhat is the term that means a total ban on trade?EmbargoWhat is the name of the trade agreement between the U.S., Canada, and Mexico that was meant to remove all trade barriers such as tariffs, quotas, and embargos?North American Free Trade Agreement or NAFTAWhy do countries need to exchange currencies when trade occurs?Most countries have different currencies

What happens to a country’s GDP as a result of investing in human capital and capital goods ?It increases the Gross Domestic Product.What are some examples of investing in human capital?Education and health care (insurance)What are some examples of investment in capital goods?Technology, machinery, buildings, stock, or any other things needed to operate a businessWhat is the importance of natural resources to a country’s economy?It is very important and often dictates the types of economic activities practiced.What term stands for a person that takes a risk to start a business?EntrepreneurWhat term means a person borrows money to purchase a product?Credit

What term stands for a financial plan that a person follows?BudgetWhat term stands for putting money aside that one doesn’t spend?SavingsWhat term means to put money into stocks or other areas in hopes of a return because their money gains interest?InvestmentWhich country has the most economic freedom between the United Kingdom, Germany, and Russia?United KingdomWhich country has the least amount of economic freedom between the United Kingdom, Germany, and Russia?RussiaWhat kind of economy is found in Australia?Market. They have one of the freest economies in the world.What is the name of the currency in most Latin American countries?PesoWhat is the currency of Canada?Canadian dollar or loonyWhat is the currency of the United Kingdom?PoundWhat is the currency of most countries in the European Union?EuroWhat is the currency of Russia?RubleWhat type of economy is found in Cuba?command