Economic Systems

Term Definition
Economics The social science that deals with the production,distribution and consumption of the goods and services
Bartering Exchanging one good or service for another
Three questions answers What to produce? How to produce? For whom to produce?
Traditional Based on customs and traditions
Command Relies on govorment to make all economic desisions
Market Consumer chosie determines on how markets operate, no govorment
Capitalism Economic systems in witch private owners controls the production or goods and profit
Supply How much people have of an item or product
Demand What or how much people want of an item or product
Mixed Limited govorment involvement with free market concepts
Specializition Making a living doing what a person dose best
Natural resource Items that come from the world around us
Capital goods The items that people need to complet there jobs
Human resource A supply of people who can produce goods
Entrapenure People with new ideas that are willing to risk it for there company
Literacy rate The precent of people in a country who can read and write
Standard of living Level of comfort in everyday life
GDP per capita The average annual income or a nations citizens
Tariff
Quota
Embargo
Currency Money
Currency exchange Convertering ones national money into the equal value in another country’s currency

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