Economics Vocabulary

STANDARDS SS7E1 The student will analyze different economic systems. a. Compare how traditional, command, and market economies answer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce. b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command. c. Compare and contrast the economic systems in South Africa and Nigeria.

ESSENTIAL QUESITONS How do different economic systems compare and contrast? How do traditional, command and market economies answer the question of what to produce, how to produce, and for whom to produce? What is a mixed economy? Why do countries have a mixed economy?

Natural resources Raw materials from nature used to produce goods. Can be renewable (has no limit, like the sun’s energy) or non-renewable (limited supply, as in oil).

HUMAN CAPITAL 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

TRADITIONAL THIS SYSTEM REPEATS THE PAST Uses old-fashioned methods and machinery to produce and trade goods

MARKET THIS SYSTEM HAS NO GOVERNMENT INTERVENTION ALLOWS OWNERSHIP OF PRIVATE PROPERTY and BUSINESSES

COMMAND THE GOVERNMENT CONTROLS EVERYTHIG IN THIS SYSTEM SOMETIMES RESULTS IN LIMITED SUPPLY OF GOODS CAN SLOW DOWN AN ECONOMY (SLOW GROWTH)

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

Currency Money-coins and bills

TARIFF A TAX ON IMPORTED GOODS

What, how, and for whom to produce? 3 economic questions What, how, and for whom to produce?

A PERSON WHO STARTS UP A COMPANY, TAKES THE RISKS ENTREPRENUER A PERSON WHO STARTS UP A COMPANY, TAKES THE RISKS

LIMITS ON THE QUANITY THAT CAN BE IMPORTED QUOTA LIMITS ON THE QUANITY THAT CAN BE IMPORTED

GOODS LEAVING,OR EXITING A COUNTRY EXPORTS GOODS LEAVING,OR EXITING A COUNTRY

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

NATURAL RESOURCES, CAPITAL GOODS, HUMAN CAPITAL, AND ENTREPRENEURSHIP 4 FACTORS OF ECONOMIC GROWTH NATURAL RESOURCES, CAPITAL GOODS, HUMAN CAPITAL, AND ENTREPRENEURSHIP

GOODS COMING INTO A COUNTRY IMPORTS

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

BLOCKING GOODS FROM ENTERING A COUNTRY EMBARGO BLOCKING GOODS FROM ENTERING A COUNTRY

GDP DIVIDED BY THE COUNTRY’S POPULATION PER CAPITAL GDP GDP DIVIDED BY THE COUNTRY’S POPULATION

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