ECONOMICS Vocabulary

Kayla Robertson

Market economy

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 .
Ex. Mexico

barter

exchange (goods or services) for other goods or services without using money.
ex. Phoenicians

embargo

an official ban on trade or other commercial activity with a particular country.
Ex. Cuba

tariff

a tax or duty to be paid on a particular class of imports or exports.

quota

a limited or fixed number or amount of people or things, in particular.
Ex. 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

  1. 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.

  2. ex. Europe

capital

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.
Ex. automobiles, patents, software and brand names.

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.

  2. Ex. knowing how to operate a proprietary machine that is owned

Capital Goods

  1. goods that are used in producing other goods, rather than being bought by consumers.

  2. 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.
hammers, forklifts, conveyer belts, computers, and delivery vans.

gross domestic product

  1. the total value of goods produced and services provided in a country during one year.


  2. the sum of the market values, or prices, of all final goods and services produced in an economy during a period of time.

standard of living

  1. the degree of wealth and material comfort available to a person or community.

  2. countries with a very small, very rich upper class and a very large, very ... Industrial Revolution

literacy rate

literacy rate - Percentage of persons aged 15 and over who can read and write.


Adult literacy rates are below 50% in Benin, Burkina Faso, Chad, Ethiopia, Guinea, ... have, for example, significantly increased their budget allocation to literacy.

Medium of exchange

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

  2. Let's take a look at some examples to illustrate the concept and function of money as a medium of exchange.

Mixed economy

  1. an economic system combining private and public enterprise.

  2. Good examples of countries with mixed economy include Iceland, Sweden, France, the United Kingdom, the United States, Russia, China

Goods

benefit or advantage to someone or something.
items you buy

SERVICES

the action of helping or doing work for someone.
Police officer