1. Unit Four
Vocabulary

2. Traditional Economy
An economic system in which social roles and culture determine how goods and services are produced and distributed

3. Command Economy
An economic system in which the government decides how goods and services are produced and distributed

4. Market Economy
An economy that allows business owners to compete in the market with little government interference

5. Continuum
Most economies are not pure market or pure command. They are somewhere in between. Everything in between is part of the continuum.
Pure Command
Pure Market

6. Voluntary Trade
Voluntary trade is voluntary exchange of goods and services between people and/or countries. This is the concept that people may decide what and when they want to buy and sell.

7. to pursue some special line of study, work, etc.; have a specialty
Specialization
to pursue some special line of study, work, etc.; have a specialty
to be adapted to a special function or environment.

8. Trade Barriers
any regulation or policy that restricts international trade, esp. tariffs, quotas, etc.

9. Fees imposed by a government on imported or exported goods
Tariffs
Fees imposed by a government on imported or exported goods

10. Quotas
A proportional share, as of goods, assigned to a group or to each member of a group; an allotment.

11. Embargoes
an order of a government prohibiting the movement of merchant ships into or out of its ports

12. OPEC
The Organization of Petroleum Exporting Countries, which decides the price and amount of oil produced each year in Iraq, Iran, Saudi Arabia, Kuwait, Venezuela, and other countries.

13. Currency Exchange
one party purchasing a quantity of one currency in exchange for paying a quantity of another

14. Human Capital
refers to the stock of skills and knowledge embodied in the ability to perform labor so as to produce economic value.

15. Gross Domestic Product
gross national product excluding payments on foreign investments
Also called GDP

16. a Latin phrase meaning Per Head
Per Capita
a Latin phrase meaning Per Head
It is usually used to indicate the average per person for any given concern, such as income, crime rate, etc.

17. Entrepreneur
a person who organizes and manages any enterprise or business, usually with considerable personal initiative and risk