Economics Voc.

Aaron Sampson

DEFINITION


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.

2 A command economy is when government makes decisions, or a planned economy, is an economic system where the main economic decisions (such as allocating scarce resources like labour, capital, soil and natural resources) are taken by a central body; which is usually the government.

3 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.

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

5 Barter: Exchange (goods or services) for other goods or services without using money.

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

7 A tariff is a tax on imports or exports (an international trade tariff), or a list of prices for such things as rail service, bus routes, and electrical usage.

8 Quota: A limited or fixed number or amount of people or things, in particular.

9 Trade Barrier:A barrier to trade is a government-imposed restraint on the flow of international goods or services. The most common barrier to trade is a tariff—a tax on imports. Tariffs raise the price of imported goods relative to domestic goods (goods produced at home).

10 Capital:The most important city or town of a country or region, usually its seat of government and administrative center.

11 Human Capital:The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

12 Capital Goods:goods that are used in producing other goods, rather than being bought by consumers.

13 In economics, factors of production, resources, or inputs are what is used in the production process in order to produce output—that is, finished goods.

14 Gross domestic product (GDP) is defined by the Organisation for Economic Co-operation and Development (OECD) as "an aggregate measure of production equal to the sum of the gross values added of all resident, institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs.

15 Standard of living refers to the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area.

16 The literacy rate is the percentage of people with the ability to read and write.

17 A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system.

18 A mixed economy is an economic system variously defined as containing a mixture of markets and economic planning, in which both the private sector and state direct the economy; or as a mixture of public ownership and private ownership; or as a mixture of free markets with economic interventionism.

19 Goods: In economics, a good is a material that satisfies human wants[1] and provides utility, for example, to a consumer making a purchase.

20 service: In economics, a service is an intangible commodity. That is, services are an example of intangible economic goods