1. Economics Vocabulary

2. The system of production, distribution, and consumption.
Economic system

3. Economic system where the exchange of goods or services is based on custom and tradition.
Traditional economy

4. An economy in which the government owns most of the industries and makes most of the economic decisions about production, distribution, and consumption
Command economy

5. An economy in which business owners and consumers makes decisions about what to make, sell, and buy.
Market economy

6. An exchange of goods and services based on at least two other types of economic systems.
Mixed economy

7. A country’s focus on making or providing one specific good or service because the country can produce the good or service at a lower cost.
Specialization

8. A tax placed on goods when they are imported into one country from another country.
tariff

9. Limit on trade; a specific amount or number of a particular product that can be imported or acquired in a given period.
Quota

10. An order to stop the movement of goods; one country may restrict or suspend trade between it and another country.
Embargo

11. Monetary unit of a nation (money of a country)
Ex: Dollars, pesos, dinars, rupees, pounds
currency

12. A procedure to determine the value of one country’s currency in terms of another.
Ex: 500 pesos equals approximately 32 dollars
Exchange rate

13. Human capital (human resources)
Skills people use in order to produce goods and services
Human capital (human resources)

14. Capital goods (capital resources)
The machines and equipment people make in order to produce goods and services.
Capital goods (capital resources)

15. Natural resources Resources or materials found in nature.
Ex: trees, fertile soil, water
Natural resources

16. Gross Domestic Product; the value of those goods and services produced within a country.
Does GDP give us information about a country’s standard of living?
GDP

17. A product brought into a country through trade or sale.
import

18. A product traded with or sold to another country.
export

19. The process of starting a business and/or organization.
The person starting the business/organization is the entrepreneur.
entrepreneurship

20. Trade between countries around the world.
International trade