1. Are you READY???

2. What is this? 1. It is an economic system
2.Tools are simple and they have no technology.
3. Jobs are handed down from generation to generation.
4. Old customs and habits answer the questions.
5. No money, only bartering

3. What system? 1. No regular citizens have any say in what they do.
2.Sometimes the government tells you how much you have to make a dayworth of products.
3.Even with improving your production, you don’t get extra money
4.Government owns all businesses and farms.
5.Government makes all the economic decisions.

4. What system ?
1. Sometimes called free enterprise, or capitalism 2. Each business or farm decides what they want to produce. 3.Economic decisions are decided by producers and consumers 4. No government laws on how to make products, advertisements, and safety of products. 5.Government plays NO ROLE in a this system

5. What system? 1.This system comes in many forms.
2. It is either closer to Market or Command.
3. The consumers , producers and the government answer the economic questions.
4.It is a blend of the other economies.
5. They may have many rules or a few rules.

6. Barter_______ means Get something for something else. No money is used
Used in Traditional Economy
Trade

7. Scarcity means….. Something that is of limited supply
Not much of it but everyone needs / wants it
Not having enough to go around

8. What are trade barriers?
Anything that makes it hard to trade
Physical trade barriers
Mountains
Deserts
Political trade barriers
Tariff
Embargo
Quota

9. The United States has a MIXED______________ economic system
But it is closer to a _Market___________ economy.

10. HUMAN CAPITAL …MEANS INVESTING IN????
EDUCATION, SKILLS, TRAINING, AND HEALTH CARE TO INCREASE PRODUCTION of the workforce or people

11. W Which trade barrier?? Embargo..Stop trade all together
Quota…limit the amount of good imported to your country
Tariff …Place an extra tax on all imported goods.

12. GDP
Gross Domestic Product= All the products that are produced in a country in a one year period.
GDP rises if a country invests in. Human Capital, which includes education and training of the workers.

13. Physical Capital????? Buildings Railroads Roads Equipment Technology
Machines
Trucks
Airports
Making sure that all these things are running WELL and are in GOOD condition to make sure the production is at its best!!!!

14. Literacy Rate +
If a country has a high LITERACY RATE , it will also have a HIGHER standard of living most of the time!