Economic systems

Term Definition
economics the social science that deals with the production distribution of goods and services
3 questions answered 1.what to produce . 2.how to produce it . 3. for whom to produce
traditional based on customs
command gov. decides on what goods are made
market economic system based on free trade
capitalism privet owner controls the production of goods and profit
supply how much people have or how much is available
demand what or how much people want
mixed economy
specialization making a living off of something a person dose best
natural resource not man made
capital goods items that people need to do their jobs
human recourses people who can produce goods or services
entrepreneur people who have new ideas
literacy rate the percent of people in a country who can read and write
standard of living level of comfort in everyday life
GPD per capita the average annual income of a nations citizens
tariff a tax place on imported goods
quota limits on how much of an particular can be imported from a certain country
embargo forbids trade for political reasons
currency money
currency exchange converting one nations money equal to another country's

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