Economic Vocabulary

By:Braona Harris

Market Economy

An market economy is a capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.An example of an market economy is when someone goes someone to go and buy goods.

Command Economy

An command economy is a socialist economic system in which production and distribution of goods and services are controlled by the government and industry is mostly publicly owned.An example of an command economy is when something is controlled by the government like goods such as canned goods such as diced tomatoes and other canned foods.

Traditional Economy

An traditional economy is an original economic system in which traditions,customs,and beliefs shape the goods and the products the society creates.An example of an traditional economy is when you go to a place that makes cups and bowls, you will see how they provide things for us to eat out of.

Market

An market is an store that you can go and buy goods from.An example of an market is a store that sells food,canned foods,and many more things.

Barter

An barter is an trade or exchange of something that you want or need instead of money.An example of something to exchange is something like a cow for some chickens.You could trade a cow for chickens because you might not have any eggs for yo to eat on.

Embargo

An embargo is when someone wants or needs what you have and you don't want what they are trying to trade for it.An example of an embargo is when you need a cow for some milk and another country has what you need and they don't want you are trying to give you for the cow,you can place an embargo on that country.

Tariff

Tariff is a tax or duty to be paid on a particular thing.An example of a tariff is when you borrow money from someone so much and you know you owe that person some money.

Quota

An quota is when you can only buy or sell a limit.An example of a quota is when you only have $50 and you what you have already bought cost $49.99 you cannot get anything else because then you would of went over your $50 limit.

Trade Barrier

Trade barriers are measures that governments or public authorities introduce to make imported goods and services less competitive than locally produced goods and services.An example of an trade barrier is when you can take a boat and transport goods and other things to another country or state.

Capital

An capital is the most important city or town of a country or region,usually its seat of government and administrative center.An example of a capital is that the United Kingdom is the capital of the United States.

Human Capital

Human capital is the skills,knowledge,and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.An example of an human capital is when girls and boys come to school to get an education for the future.

Capital Goods

Capital goods are goods that are used in producing other goods, rather than being bought by consumers.An example of an capital good is when you use something that has already been used by someone else.

Factors of Production

Factors of production is 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. An example of factors of production are boats transporting goods and services to another country or state.

Gross Domestic Product

Gross domestic product is the total value of goods produced and services provided in a country during one year.An example of an gross domestic product is like how much money your country makes.

Standard of Living

Standard of living is the degree of wealth and material comfort available to a person or community.An example of standard of living is the higher your standard of living, the higher your literacy rate.

Literacy Rate

An literacy rate is the higher your literacy rate, the higher your standard of living.An example of literacy rate is when girls and boys go to school and some of the girls have to stay and clean up the houses for men or do house chores.

Medium of Exchange

A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system.An example of that when you trade something for something else instead of money.

Mixed Economy

A mixed economy is an economic system combining private and public enterprise.An example of an mixed economy is someone that is almost free but not all the way free.

Goods

Goods are things people trade.An example is canned foods.

Services

Services are things that help people.An example is working.