1. SPECIALIZATION

2.  Economics: all about making choices with limited resources.  Scarcity: our limited resources will not allow us to fulfill our unlimited wants.  Imports: goods brought into a country.  Exports: goods exiting a country. REVIEW

3.  3 Economic Questions: 1) What to produce? 2) How much to produce? 3) Who to produce for? REVIEW

4.  Traditional Economy: relies on farming, hunting and fishing; no paper money exists.  Market Economy: producers and consumers answer the 3 Economic Questions; no government involvement.  Command Economy: government answers the 3 Economic Questions; producers and consumers are not involved.  Mixed Economy: government and producers/consumers help to answer the 3 Economic Questions together. REVIEW

5.  Gross Domestic Product (GDP): value of all goods produced in a particular country.  Human Capital: investing in your education and skills.  Investment in human capital increases America’s GDP by allowing our country to provide educated and skilled workers to fill high-skill, high-pay jobs. REVIEW

6.  Trade Barriers: anything that slows down trade.  Tariffs: taxes on imported goods.  Quota: limit on the number of goods imported into, or exported out of, a country.  Embargo: ban on trade with another country. REVIEW

7.  Capital Goods: tools, machinery, factories, technology, etc.  Investment in capital goods helps America’s GDP by providing high-skill, high pay jobs for educated and skilled workers. CAPITAL GOODS

8.  Definition: willingness to start a new business and assume the risks involved. What are some risks involved in starting your own business? What are some of the benefits involved in starting your own business? ENTREPRENEURSHIP

9.  Entrepreneurs, mostly small business owners, help our economy and GDP by providing entry- and lower-level jobs for people who are less skilled and/or less educated than those that fill the high-skill, high-pay jobs. ENTREPRENEURSHIP

10.  Definition: focusing on producing specific goods/services in order to achieve greater productive efficiency. By specializing, a business can make more of their product, and they can make it faster. SPECIALIZATION