Economies

Economics Supply of human skills, natural goods, and capital goods

Goods and Services Products or services sold to a consumer or another industry

Gross domestic product GDP The total amount of goods and services produced in a country

Four Factors of Production Human capital Capital goods Natural Resources Entrepreneurship

Human capital The value that people bring to the workplace

Capital goods Goods used to make products

Natural resources Resouces that come from the Earth such as trees, fresh water, Soil, plants or animals

entrepreneurship A person who takes on the risk and possible reward of operating a new business

Types of economies Traditional Command Market

Traditional economy Economy dominated by methods and techniques that have strong social support even though they may be out of date

Command economy An economy that is planned and controlled by a central administration

Market economy Economy that operates by voluntary exchange in a free market and is not planned or controlled by a central authority—a capitalistic economy

Types of capital investments Factories Machinery Technology

Trade Barriers Tariffs Quotas Embargoes

Tariffs Taxes on goods coming into a country

quotas Limits on the number of goods that can be imported from a certain country

embargo Ban on trade with another country