Question | Answer |
Economy | a system by which business owners in a region use productive resources to provide goods and services that satisfy people’s wants.
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Command Economy | An economy in which a government planning groups makes most of the basic economic decisions for the workers
| Market Economy | An economy in which society’s economic decisions are made by individuals who decide what to produce and what to buy
| Traditional Economy | An economy in which most of the economic decisions that are made are based on custom and on the habit of how such decisions were made in the past
| Mixed Economy | An economy that has characteristics of both market and command economic systems
| Specialization | the products that a country makes best and that one in demand on the world market
| Trade barrier | anything that slows down or prevents one country from exchanging goods with another
| Tariff | a tax placed on goods when they are brought into one country from another county.
| Quota | a way of limiting the amount of foreign goods that can come into a country
| Embargo | a trade barrier in which one country announces that it will no longer trade with another country in order to isolate and causes problems with that country’s economy.
| Currency | something that is used as a medium of exchange- example: money
| Human Capital | the knowledge and skills that make it possible for workers to earn a living producing goods or services
| Capital Goods | the factories, machines, and technology that people use to make products to sell
| Entrepreneur | creative, original thinkers who are willing to take risks to create new businesses and products
| Gross Domestic Product (GDP) | the value of all the final goods and services produced within a nation in a given year.
| Organization of Petroleum Exporting Countries (OPEC) | founded to set oil prices and policies
| Bartering | trading without using money
| What are the three economic questions that countries must answer when creating an economic plan | What to produce? How to produce? For whom to produce?
| What are decisions based on in: Traditional economy, Command economy, and Market economy | Traditional- customs, traditions, beliefs of the past; Command- based on government decisions;Market- the changes in prices that occur as buys and sellers interact in the market place
| How many true market economies are found in the world today | 0
| How many true command economies are found in the world today | 0
| In a command economy what four things does the government do | Owns most property, Determines wages, Plans what will be made, Sets prices
| In a market economy with no government involvement what two things could occur | No laws to make sure goods and services are safe;No laws to protect workers from unfair bosses
| What type of economy do you find in Turkey, Israel, and Saudi Arabia | Mixed
| What country in the Middle East has the most diversified economy | Israel
| Since Saudi Arabia became a country in 1932- what three economic systems have they had | Traditional, command, mixed
| What struggles do each of the three countries (Turkey, Israel, Saudi Arabia) face dealing with their economy | Israel- conflict with neighboring countries, cost of building and maintaining national security, immigrates coming into the country;Saudi Arabia- most of their income comes from oil, high unemployment rate, does not have many skilled -natives living in the country;Turkey- country is in both Europe and Asia, wants to be part of the European Union due to trading with European countries- Turkey is considered a developing country so they are unable to join the EU
| What is this an example of: The 5% tax placed on items being shipped from Brazil the United States | Tariff
| What is this an example of: Italy is only allowed to import 500 Nike Shoes from China | Quota
| What is this an example of: Australia will not import cat food from India because India does not have safety regulations on how the food is produced and the food they were buying is making cats sick | Embargo
| Sheetul goes out and hunts for dinner for his next family’s meal. He hopes he will catch something tonight | Tradition economy
| The Sony Corporation wants to release a new, more innovative TV than ever before! Sony doesn’t have to ask the central government if they have to pay a tax on this new product | Market Economy
| Johnny lives in a democratic nation, but the government still regulates certain industries like the postal service and military | Mixed Economy
| The government makes all the economic decisions for the country | Command Economy |