Economic Vocabulary

important concepts for Social Studies

economics:  the study of how people or countries manage (choose to use) their limited resources by producing, exchanging, and using goods and services.easy definition: how people use and manage their resources

Sources: Microsoft Clip Art(left) Wikimedia (right)

Traditional Economy:economic system in which social roles and culture decide what will be produced, how it will be produced and how it will be distributed

easy definition: your social roles and culture decide every thing about your product

Image created by Erwin Pedia  

Command economy: A system in which the government decides what will be produced, how it will be produced, and how it will be distributed. 

Easy definition: An economic system where the government decides the answer to the three economic questions.

Image created by Max  

market economy:economic system in which the people decides what will be produced, how it will be produced, and how it will be distributed easy definition: An economic system where the people decide the 3 economic questions.

 

Image created by 

mixed economy:  economic system in which the government and people share the role in deciding what will be produced, how it will be produced, and how it will be distributed.easy definition:Is when the people and the government are in charge of products

Image created by Max & Logan

specialization:  when a country focuses resouces on creating fewer specific products and services than they consume

easy definition: create one product and trade for the rest

All images are public domain.  Sources: Wikimedia

trade barriers: -governmental policies that restrict the entry of products into a country.

easy definition: things that interfere with the entry of goods.

Image created by David

tariff: Per item either, by weight or origin, there is a certain amount of money to be paid per import, or a tax.

easy definition: Tax on imports.

All images are public domain.  Sources: ctemploymentlawblog.com

quota:  Limiting the amout of products that can come into a country.

easy definition: a limit of imported goods

Image created by Lexie

embargo:  cutting off trade to a certain country because of political reasons

add pictures, then delete this box

easy definition: No longer trading with a country for a certain period of time or when the leader of a country says to open trade again.

Image created by Joshua

currency:something that is used as a medium of exchange; money.

easy definition: money

All images are public domain.  Sources: Wikimedia Commons

exchange rate:  The rate at which one unit of the currency of a country can be traded for  a unit of the currency of another country

easy definition: How much one currency is worth in another country.

All images are public domain.  Sources: Wikimedia Commons

Natural Resources:  Raw materials used to make products or "gifts of nature."

Easy Definition: Natural raw materials.

All images are public domain.  Sources: Wikimedia commons

human capital: Labor that is done by people in order to produce products.

easy definition: Work that is done by workers.

All images are public domain.  Sources: www.publicdomainpictures.net

capital goods:  the machines, tools, factories, land, and technology that are needed to make other products.

 easy definition: the tools and machines used to make other products.  

All images are public domain.  Sources: Wikipedia and http://www.publicdomainpictures.net

G.D.P.: The amount of products and services produced in one country in one year.

All images are public domain.  Sources: Wikimedia Commons

easy definition: value of products made in a country in one year.

trade:  voluntary exchange of products or services

easy definition: exchange

All images are public domain.  Sources:

import: a product brought into a country through trade or sale

easy definition: the income of products

All images are public domain.  Sources:

export:  a product leaving a  country through trade or  sale.

easy definition : products leaving a country.

Student created image

entrepreneurship:  Bringing together natural, capital, and human resources and taking risks to start a business. 

 easy definition: when someone who pools resources to start a business.