ECONOMY VOCABULARY
An economy that’s based on survival of the community
TRADITIONAL ECONOMY
An economy that is mostly controlled by the gov’t
Command Economy
An economy where the citizens make most of the buying decisions
Market Economy
When there is not enough of a desired product
Shortage
When there is too much of a product that is not selling
Surplus
A product of the earth used to meet people’s needs
Natural Resource
Cannot be used up; can be grown or replaced
RENEWABLE
Investment in the education, training, and healthcare of workers
Human Capital
Machinery, computers, technology needed to make a product
Capital Goods
A country that manufactures many products
DEVELOPED COUNTRY
A country working toward industrialization
Developing Country
The exchange of goods/currency between people and countries
Voluntary Trade
An obstacle to voluntary trade
Trade Barrier
A tax placed on some imported goods
Tariff
A limit to the number of products that can be imported
Quota
A ban on trading with another country
Embargo
One who starts and owns his/her own business
Entrepreneur
A product made in one country but sold in another country
Export
The percentage of people who can read and write
Literacy Rate
Free trade agreement between US, Canada, and Mexico
NAFTA North American Free Trade Agreement
The quality of life based on one’s income and material goods
Standard of Living