Economic Systems. Mixed 2 Few countries have a pure market OR a pure command economy. Instead they are a mixture of both. This is because if it is mixed.

Economic Systems

2

Mixed

3

Few countries have a pure market OR a pure command economy. Instead they are a mixture of both. This is because if it is mixed more towards a free-market, there is little government regulation. People could take advantage of that. If it is mixed more towards a command economy, the government control may keep the economy from growing.

4

Command

5

Government tells you what to produce, how to produce it, and who to produce it for. (not very successful- think North Korea)

6

Market

7

Consumers and supply and demand tell companies what to produce, how to produce it, and who to produce it for. (best to raise a country’s standard of living- guided by changing prices!)

8

Traditional

9

Tradition, ritual, and custom tells people what to produce, how to produce it, and who to produce it for.

TradeBarriers

11

Embargo

12

Restriction of Trade for political purposes. An attempt to punish or manipulate a country for doing something wrong.

13

Quota

14

a limit on the amount of goods that can be imported from a certain country. protects local manufacturers and producers, balances trade and limits competition

15

Tariff

16

a tax on imported goodsa way to discourage a country's consumers from buying products from another country and to support domestic products and services.

Factors of Productio

n

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Human Resources

19

Labor, skilled workers- the people that it takes to make an economy work AKA- human capitaleducation, skills and experience

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Natural Resources

21

Gifts from nature that help make an economy grow

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Capital Resources

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Tools, machinery, technology used to make and economy grow

Infrastructure

The basic equipment and structures (such as roads

and bridges, power plants, buildings) that are needed

for a country, region, or organization to function properly (capital goods)

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Entrepreneur

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A person with an idea who takes risks to start a business in order to make a profit-*important to economies because they create jobs

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Specialization

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When a country does one thing very well, and trades with other countries to get the rest

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Gross Domestic Product (GDP)

and GDP (per Capita)

31

The total market value of all goods and services produced in a country in a year-

GDP per capita is the division of the GDP by the total population

CurrencyExchange

(Why do we have a system of currency exchange?)

It allows us to consistently express the value of an item

across borders. Need exchange rates because

one nation's currency is not always accepted in another.

Standard of Living

the necessities, comforts, and luxuries enjoyed or aspired to

by an individual or group

Literacy Rate

Total is the percentage of the population age 15 and

above who can, with understanding, read and

write a short, simple statement on their

everyday life.