Economics Vocabulary

By Diamond Randall

Market Economy

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 determinded in a free price system.

Example: Characteristics, Advantages , and Disadvantages.

Command Economy

An economy in which production , investment , prices , and incomes are determine centrally by a government

Example: Command Economies

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.

Example: Bangladesh and Burma


Advertise or promote

Example : Automobile Market


Exchange for other goodsor services without using money

Example :Batering for food service


An official ban trade or other commercial activity with particular country.

Example : Groups


A tax or duty to be paid on a particular class of import and export

Examples : Taxes


A limited or fixed number or amount of people or things

Examples : Amount

Trade Barrier

Are measures that government or public authorities introduce to make imported goods and services less competitive than locally produced goods and services

Example : Public Authorities


The most important city or town of a country and region

Example : region

Human Capital

The skills knowledge and experience possessed by an individual or population viewed in terms of their

Examples : Knowledge

Capital Goods

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

Example : Candy , Chocolate, Bubble Gum

Factors of Producton

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

Example : product goods

Gross Domestic Product

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

Examples : The Department of Commerce

Standard Of Living

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

Example : High standard of living is a wealthy person who can buy anything she or he wants

Literacy Rate

This entry includes a definition of literacy and census bureau percentages for the total population , males , and females.

Example : significantly increased their budget allocation to literacy

Medium of Exchange

Is an intermediary used in trade to avoid the inconveniences of a pure barter system

Example : To illustrate the concept and function of money

Mixed Econmy

Is an economic system variously defined as containing a mixture of markets and economic planning .

Example : Share government spending as a % of GDP


A good is a material that satisfies human wants and provides utility.

Example : To a consumer making a purchase


An economic system or sector based in buying and selling of services

Example : economic goods