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.

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.

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.


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 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.


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.


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.


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.

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.


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.

Human Capital

Human Capital is

Capital Goods