ECONOMICS VOCABULARY

ANAYA KNIGHTON

,MARKET ECONOMY

  1. A market economy is an economy in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.Some countries that have a market economy are Mexico, United States, United Kingdom, Germany, and Canada . These countries have a market economy because the prices of goods and services are set by supply and demand.

COMMAND ECONOMY




  1. An economy in which production, investment, prices, and incomes are determined centrally by a government. China, Cuba, North Korea and the former Soviet Union are examples of countries that have command economies.




TRADITIONAL ECONOMY

  1. A traditional economy is an original economic system in which traditions, customs, and beliefs shape the goods and the products the society creates. Countries that use this type of economic system are often rural and farm-based.Traditional economies are often found in areas like Africa, Asia, and parts of South America. The Inuit in Canada are also a group that use this system. The standard of living, or quality of life, is often lower than in countries like the United States.

MARKET

  1. A regular gathering of people for the purchase and sale of provisions, livestock, and other commodities.

BARTER


    1. When companies exchange (goods or services) for other goods or services without using money.Malaysia is one of those countries where the barter system has immense and ... Still in Malaysia along with the modern trade system, the barter system is in use.


EMBARGO

An official ban on trade or other commercial activity with a particular country.

  • Sudan by US since 1997.
  • Mali (by ECOWAS) total embargo in order to force Juntas to give power back and re-install National constitution. ...
  • China (by EU and US), arms embargo, enacted in response to the Tiananmen Square protests of 1989.

TARIFF

A tax or duty to be paid on a particular class of imports or exports.An example of a tariff is a fee for bringing steel into the United States.An example of a tariff is a fee for bringing steel into the United States.

QUOTA

In production quotas, a government or a group of producers, limit the supply of a particular product in order to maintain a certain price level. For example, the Organization of Petroleum Exporting Countries sets a production quota for crude oil in order to "maintain" the price of crude oil in world markets.

TRADE BARRIER

Trade barriers are measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services. Not everything that prevents or restricts trade can be characterised as a trade barrier

CAPITAL



The wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.Some examples of capital goods, which are assets used to produce consumer goods and services, are machine tools, buildings, computers,and baggage-handling .

HUMAN CAPITAL





  1. The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.Today, most theories attempt to break down human capital into one or more ..... An example of this is discrimination against minority or female employees.





CAPITAL GOODS

Any tangible assets that an organization uses to produce goods or services such as office buildings, equipment and machinery. Consumer goods are the end result of this production process.


The same way, a chocolate candy bar is a consumer good, but the machines that are used to produce the candy would be considered production goods. Some of the capital goods can be used in both production of consumer goods or production ones, such as machinery for production of dump trucks.

FACTORS OF PRODUCTION

An economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit. The factors of production include land, labor, capital and entrepreneurship.

GROSS DOMESTIC PRODUCT

The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis.A numerical example will explain the fact that GDP is expressive of these three sides or, in other words, of the contemporary action of buyers, sellers, producers ...

STANDARD OF LIVING

The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. For example, compared with a century ago, the standard of living in the United States .

LITERARCY RATE

Percentage of persons aged 15 and over who can read and write. for example, significantly increased their budget allocation to literacy.

MEDIUM OF EXCHANGE

A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system.Some examples to illustrate the concept and function of money as a medium of exchange.

MIXED ECONOMY

An economic system The world's developed nations are the most common examples of mixed economies. The United States, Canada, Australia, Japan, Germany,bining private and public enterprise.

MIXED ECONOMY



A benefit or advantage to someone or something.

SERVICES

The action of helping or doing work for someone