Vocabulary

Nicholas Scott

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 system.

Command Economy

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.

Traditional Economy

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.

Market

a regular gathering of people for the purchase and sale of provisions, livestock, and other commodities

Barter

exchange (goods or services) for other goods or services without using money

Embargo

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

Tariff

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

Trade Barrier

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.

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.

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

Capital Goods

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

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.

Gross Domestic Product

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

Standard of Living

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

Literacy Rate

This entry includes a definition of literacy and Census Bureau percentages for the total population, males, and females. There are no universal definitions and standards of literacy. Unless otherwise specified, all rates are based on the most common definition - the ability to read and write at a specified age

Medium of Change

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

Mixed Economy

an economic system combining private and public enterprise

Goods

that which is morally right; righteousness

Services

the action of helping or doing work for someone