1. cheaper
command
currency do
don’t
easier
economic
embargo
export
for whom
foreign
goods
how
import
market
mixed
protect
quota
resources
services
specialization
tariff
traditional
what

2. What is Economics?
Part 2

3. 1) Economic System An economic system organizes a country’s resources.
It helps decide 1) what, 2) how, and 3) for whom to make things.
EX: command, market, traditional, mixed

4. 2) Specialization
How a country chooses to answer the 3 basic economic questions usually leads to specialization.
Countries choose to make some goods & services instead of others, depending on what resources they have.

5. 3) Voluntary & International Trade
Due to specialization, countries need to trade.
Countries trade to get the goods & services they DON’T make from countries that DO make them.

6. 4) Import & Export
When countries trade, they import the resources they DON’T have and export the resources they DO have.

7. 5) Currency & Exchange Rate
To make trade easier, countries use currency.
If countries don’t use the same kind of currency, they must use an exchange rate.

8. 6) Trade Barriers
Due to specialization & exchange rates, goods and services from other countries are sometimes cheaper.
Countries may use trade barriers to protect their businesses from foreign competition (ex. cheaper products)
EX: embargo, quota, tariff

9. 1) Economic System 2) Specialization 5) Currency & exchange rate
Economic systems organizes a country’s resources.
It helps decide 1) what, 2) how, and 3) for whom to make things.
EX: command, market, traditional, mixed
2) Specialization
How a country chooses to answer the 3 basic economic questions usually leads to specialization.
Countries choose to make some goods & services instead of others, depending on what resources they have.
3) Voluntary & International Trade
Due to specialization, countries need to trade.
Countries trade to get the goods & services they DON’T make from countries that DO make them.
5) Import & Export
When countries trade, they ) import the resources they DON’T have and ) export the resources they DO have.
5) Currency & exchange rate
To make trade easier, countries use currency.
If countries don’t use the same kind of currency, they must use an exchange rate.
6) Trade Barriers
Due to specialization & exchange rates, goods and services from other countries are sometimes cheaper.
Countries may use trade barriers to protect their businesses from foreign competition (ex. cheaper goods & services)
EX: embargo, quota, tariff

10. 5) Currency & Exchange Rate 6) Trade Barriers
1) Economic System
An economic system organizes a country’s resources.
It helps decide 1) what, 2) how, and 3) for whom to make things.
EX: command, market, traditional, mixed
2) Specialization
How a country chooses to answer the 3 basic economic questions usually leads to specialization.
Countries choose to make some goods & services instead of others, depending on what resources they have.
3) Voluntary & International Trade
Due to specialization, countries need to trade.
Countries trade to get the goods & services they DON’T make from countries that DO make them.
4) Import & Export
When countries trade, they import the resources they DON’T have and export the resources they DO have.
5) Currency & Exchange Rate
To make trade easier, countries use currency.
If countries don’t use the same kind of currency, they must use an exchange rate.
6) Trade Barriers
Due to specialization & exchange rates, goods and services from other countries are sometimes cheaper.
Countries may use trade barriers to protect their businesses from foreign competition (ex. cheaper products)
EX: embargo, quota, tariff