1. Standards SS6E1, SS6E2, SS6E3, SS6E5, SS6E6, SS6E7
ECONOMICS VOCABULARY
Standards SS6E1, SS6E2, SS6E3, SS6E5, SS6E6, SS6E7

2. Economics
study of how resources are managed through production, exchange, and use of goods and services

3. Economic Decisions…
All economic systems have to answer 3 basic questions: 1. What will be produced? 2. How will it be produced? 3. For whom will it be produced? How a country answers these questions will determine the type of economy a country will have.

4. Private vs. Public Businesses
Private means it is owned by citizens.
Public means it is owned by the government.

5. Literacy Rate
The percentage of people in a country who are able to read and write.
At PB Ritch we are working hard to increase your Lexile. Why?

6. Literacy Rate Around the World
The percentage of people in a country who are able to read and write.

7. Standard of Living
how well a person lives in terms of having their needs and wants met.

8. Low Standard of Living

9. High Standard of Living

10. Life Expectancy
How long a person is expected to live

11. Developed Nations vs. Developing Nations (First World Nations)
Developed Nations vs Developing Nations (First World Nations) (Third World Nations)
Plenty of food
Quality health care
High life expectancy
Better jobs / higher pay
High standard of living
Higher literacy rate
Better education
Commercial farming
Not enough food
Poor health care
Lower life expectancy
Low income jobs
Low standard of living
Low literacy rate
Many uneducated
Subsistence Farming

12. Gross Domestic Product (GDP)
The total value of all the goods and services produced within the borders of a nation during a specific time period (usually a year).
The GDP of a country gives you an idea of how wealthy a country is.

13. Top 10 GDPs in the World

14. Bottom 5 lowest GDPs in the world
YEAR 2007
Palau- $145
Marshall Islands- $144
São Tomé and Príncipe- $144
Kiribati- $67
Tuvalu- $15

15. GDP Per Capita
A country’s GDP divided by the number of people living in that country.
This gives you an idea of how wealthy the individuals in a country are.

16. Top 10 GDP Per Capita Nations
Qatar – $129,700
Luxembourg – $102,000
Liechtenstein – $89,400
Singapore – $87,100
Bermuda – $85,700 (2013 estimate)
Isle of Man – $83,100 (2007 estimate)
Brunei – $79,700
Monaco – $78,700 (2013 estimate)
Kuwait – $71,300
Ireland – $69,400

17. Lowest GDP Per Capita Nations
Somalia – $400 (2014 estimate)
Central African Republic – $700
Burundi – $800
Democratic Republic of the Congo – $800
Liberia – $900
Tokelau – $1,000 (1993 estimate)
Malawi – $1,100
Niger – $1,100
Mozambique – $1,200
Guinea – $1,300

18. gi How does literacy rate influence a country’s GDP per capita?
The GDP divided by the population
How does literacy rate influence a
country’s GDP per capita?

19. A Higher standard of Living
A high literacy rate
A better education
A better job
Higher pay
A Higher standard of Living
a higher GDP

20. Trade Barriers Something that makes trade harder Examples: Tariff
Quota
Embargo
Physical Trade Barrier

21. Tariff a tax the government puts on imported goods.
A tariff is used to protect the businesses in your own country. If someone from another country is selling the same product you are, that will hurt your business. A tariff raises the price of the product from the other country to help your business.

23. Quota
A restriction or limit on the quantity (number) of a good that can be imported from another country

24. Quota
A quota is placed on imports so that it will not hurt the businesses in your own country that sell the same products.
For example if you sell televisions in America and another country wants to come in and sell their televisions it will hurt your business and your country’s economy. If the government puts a limit on the amount of televisions the other country can sell in your country it will help protect your business and your country’s economy.
Like a speed limit
limits the speed you
can go.

25. Embargo
Prohibits or stops trade with another nation

26. Embargo No Go!!!

29. $ Currency $ A unit of exchange for goods or services
When countries have different currencies it makes trade more difficult. (Trade barrier)

30. Decide what kind of barrier is being used in each example…
A tax of 20% makes shoes from Italy more expensive than shoes in the U.S.
The United States prohibits the importing of toys made in China because they were made with harmful lead paint.
Japan may export only 20,000 automobiles a year to the U.S.

32. Let’s review…

33. Capital resources The “stuff” used to make other goods Examples:
Machines
Ice machine
Coin press
Factories
A car manufacturing plant
Technology
Computers
Software

34. Human Capital or Human Resources
The skills that humans have to build things or perform services.
Examples:
A worker in a factory
A hair stylist
An actor
Waiter/waitress
A person who mows lawns

35. Natural Resource Any product that comes from nature Examples:
Oil, coal, natural gas
Vegetables and fruits
Cotton
Sheep and cows
Gold and silver

36. Entrepreneur/Entrepreneurship
Someone who takes a risk to start a business
They pull together the capital, natural, and human resources to start a business.