1. Social Studies OGT Review Economics

2. Types of Economies Command – all economic decisions made by the government Market – business privately owned Mixed – combination of private ownership and government controlled business

3. Trade Buying, selling, and exchanging of goods within and between countries – Exports – products leaving a country – Imports – products entering a country – Trade imbalance – when exports are not equal to imports – Tariff – tax on imports to protect domestic goods – Embargo/blockade – country refuses to trade with another country for political or economic reasons

4. Taxes Government raises money (revenue) Pays for government services Collected at each level of government

5. Federal Reserve Congress created it to manage the nation’s money supply It sets monetary policy – Changes interest rate (price to borrow money) Raise rates to get people to save Lower rates to get people to borrow and spend