Economic : Vocabulary
By:Drewcilla Harvey
Market Economy
A market economy is an economy in which decisions regarding investments , production,and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.
An example of Market economy is the United States.
An example of Market economy is the United States.
Command Economy
A command economy is an economy in which production,investments, prices, and incomes are determined centrally by the government.
An example of a command economy is China, Cuba, North Korea, and the former Soviet Union.
An example of a command economy is China, Cuba, North Korea, and the former Soviet Union.
Traditional Economy
A traditional economy is an original economic system in which traditions, customs, and beliefs shape the goods and products the society creates.
An example of a traditional economy is native americans.Native american economies rely on hunting and fishing were more healthy than those that relied on farming and therefore massed in large, disease prone communities.
An example of a traditional economy is native americans.Native american economies rely on hunting and fishing were more healthy than those that relied on farming and therefore massed in large, disease prone communities.
Market
A market economy is a regular gathering of people for the purchase and sale of provisions, livestock, and other commodity.
A Market may be a physical location or a virtual one over a network.
Another Example of a Market is Walmart.
A Market may be a physical location or a virtual one over a network.
Another Example of a Market is Walmart.
Barter
A barter is an exchange (goods and services)for other goods or services without using money.
An example of a Barter would be a photographer agreeing to photograph a dentist's wedding pictures in return for some dental work of equal value.
An example of a Barter would be a photographer agreeing to photograph a dentist's wedding pictures in return for some dental work of equal value.
Embargo
A embargo is an official ban on trade or other commercial activity with a particular country.
One famous embargo is the one between the U.S. and Cuba, which has NOT received any American goods in over 50 years.
One famous embargo is the one between the U.S. and Cuba, which has NOT received any American goods in over 50 years.
Tariff
A tariff is a tax or duty to be paid on a particular class of imports or exports.
For Example, company XYZ produces cheese in Scotland and exports the cheese, which costs $100 per pound to the United States.
For Example, company XYZ produces cheese in Scotland and exports the cheese, which costs $100 per pound to the United States.
Quota
A quota is a limited or fixed number or amount of people or things, in particular.
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.
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
A trade barrier is a government imposed restraint on the flow of international goods or services.
An Example of a Trade Barrier is an Embargo, Tariff, Quota, Standards, and Subsides.
An Example of a Trade Barrier is an Embargo, Tariff, Quota, Standards, and Subsides.
Capital
A capital is wealth in the form of money or other assets owned by a person or organization or available or contributed for particular purpose such as starting a company or investing.
An example of a Capital is anything that is officially owned by a company such as a company car or even a cash register.
An example of a Capital is anything that is officially owned by a company such as a company car or even a cash register.
Human Capital
Human Capital is