Transcript Unit Four
Unit Four Vocabulary Traditional Economy • An economic system in which social roles and culture determine how goods and services are produced and distributed Command Economy • An economic system in which the government decides how goods and services are produced and distributed Market Economy • An economy that allows business owners to compete in the market with little government interference Continuum • Most economies are not pure market or pure command. They are somewhere in between. Everything in between is part of the continuum. Pure Market Pure Command Voluntary Trade • Voluntary trade is voluntary exchange of goods and services between people and/or countries. This is the concept that people may decide what and when they want to buy and sell. Specialization • to pursue some special line of study, work, etc.; have a specialty • to be adapted to a special function or environment. Trade Barriers • any regulation or policy that restricts international trade, esp. tariffs, quotas, etc. Tariffs • Fees imposed by a government on imported or exported goods Quotas • A proportional share, as of goods, assigned to a group or to each member of a group; an allotment. Embargoes • an order of a government prohibiting the movement of merchant ships into or out of its ports OPEC • The Organization of Petroleum Exporting Countries, which decides the price and amount of oil produced each year in Iraq, Iran, Saudi Arabia, Kuwait, Venezuela, and other countries. Currency Exchange • one party purchasing a quantity of one currency in exchange for paying a quantity of another Human Capital • refers to the stock of skills and knowledge embodied in the ability to perform labor so as to produce economic value. Gross Domestic Product • gross national product excluding payments on foreign investments • Also called GDP Per Capita • a Latin phrase meaning Per Head • It is usually used to indicate the average per person for any given concern, such as income, crime rate, etc. Entrepreneur • a person who organizes and manages any enterprise or business, usually with considerable personal initiative and risk