People follow the methods and traditions their ancestors have always used; doing things the way they've always been done; a system based on trade and bartering
Traditional Economy
10
An economic system in which the government controls a country's economy
Command Economy
10
Economic decisions made by individuals or the open market; an economic system in which people choose freely what to buy and sell with no government intervention
Market Economy
10
A combination of a command and market economy; some combination of public and private enterprise
Mixed Economy
10
Economic Continuum
representation of a line to see what types of economies different countries have; shows if a mixed economy country has more command or more market leanings
15
Human Capital
the skills, knowledge, and labor that people bring to jobs
15
Capital Resources
goods made by people that are used to create other goods and services (i.e. tractors on a farm, sewing machines in a clothing factory)
15
Gross Domestic Product (GDP)
the dollar value of all goods and services produced within a country in a given year
15
Literacy Rate
the total amount of (of age) people who can read and write (does not include babies, etc. that would not be expected to know how to read/write)
15
Entrepreneur
anyone who organizes, manages, and takes on the risk of a business; a person that combines all other factors of production to create a business and incurs all t
15
Trade Barrier
slows or stops free trade between countries (3 types we talk about)
15
Tariff
tax on imported goods
15
Quota
limit on trade among countries
15
Embargo
total stop of trade between countries
15
Specialization
business or economic system focuses on producing only a certain type(s) of good(s) to maximize profit
