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Economics

Economics. The study of how people, businesses, and societies choose to use scarce resources to satisfy their unlimited wants. Economics. Economic systems answer the questions of 1-what to produce, 2-how to produce, and 3-for whom to produce?. Economics.

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Economics

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  1. Economics The study of how people, businesses, and societies choose to use scarce resources to satisfy their unlimited wants

  2. Economics Economic systems answer the questions of 1-what to produce, 2-how to produce, and 3-for whom to produce?

  3. Economics • How many basic types of economic systems are there?3 • Name the economic systems.Traditional, Command, Market • Which economic system do most textbooks say is the most common throughout the world? Mixed. The GCEE states that mixed is not an economic system but rather a blending of two different types of systems.

  4. Economics Traditional Economy- A system in which social roles and culture determine how goods are made, sold, and bought.

  5. Economics Command Economy-A command economy, also called planned economy, is directly controlled by the government

  6. Economics Socialism- an economic system in which the government owns some or all of the factors of production

  7. Economics Communism- an economic system based on one-party rule, government ownership of economic resources, and decision-making by government officials

  8. Economics Market Economy - Based on individual choices and voluntary trade.

  9. Economics Capitalism- an economic system based on the private ownership of economic resources and in which all individuals make economic decisions

  10. Economics Free Enterprise System- an economic system that allows business owners to compete in the markets with little government control

  11. Economics Mixed Economy an economy in which there are elements of both public and private enterprise

  12. Economic Systems Pure Market Pure Command Mixed Economy

  13. Economic Systems 0 100 Pure Command Mixed Economy Pure Market Iran 45% Saudi Arabia 64% Israel 68%

  14. Economic Systems 0 100 Pure Command Mixed Economy Pure Market Nigeria 55% South Africa 64%

  15. Economic Systems 0 100 Pure Command Mixed Economy Pure Market North Korea 2% India 54% Japan 73% China 53%

  16. Economics Factors of Production- the resources needed to produce goods and services

  17. Economics Land- a factor of production that includes all natural resources found on or under the ground

  18. Economics Natural Resources- Raw materials that are used to support life and make goods (2 types)

  19. Economics Natural Resources Renewable- Resources that can be replace such as trees and freshwater

  20. Economics Natural Resources- Non-renewable- resources that cannot be replaced such as oil and natural gas

  21. Economics Capital Goods- resources such as factories, machinery, and tools that people use to make other goods

  22. Economics Human Capital- the knowledge and skills that allow workers to produce goods and services and earn income

  23. Economics Labor- all the time, effort, and talent that goes into production

  24. Economics Entrepreneur- someone who brings together land, labor, and capital goods to produce goods and services

  25. Economics Expenses- Money that is spent by an individual, a business, or a government

  26. Economics Income- Money that a person receives in exchange for work or from the use of property

  27. Economics Economic Growth- the increase in the value of all the goods and services a country makes from one year to the next

  28. Economics Specialization- countries produce the goods and services that they can produce most efficiently

  29. Economics International Trade- the exchange of goods and services between countries

  30. Economics Imports- goods brought into one country from another through trade or sale

  31. Economics Exports- goods and services traded with or sold to other countries

  32. Economics Free Trade- an exchange of goods without the use of tariffs or quotas

  33. Economics Free Enterprise System- an economic system that allows business owners to compete in the markets with little government control

  34. Economics Supply and Demand- Producers supply goods and services and consumers demand them.  Prices in the market are determined by supply and demand.

  35. Economics Organization of Petroleum Exporting Countries (OPEC) - a cartel of twelve countries They decide how much oil will be produced during a certain period of time in order to regulate and set the prices (laws of supply and demand).

  36. Economics Trade barrier- any regulation or policy that restricts international trade, especially tariffs, quotas, etc.

  37. Economics Tariff - a tax placed on goods when they cross a political boundary

  38. Economics Quota- a limit on the quantity of goods that can be imported into a country

  39. Economics Embargo- Government prohibition of exports or imports with respect to specific products or specific foreign countries

  40. Economics Balance of Trade- the difference in value between a country’s exports and imports

  41. Economics Currency- money in any form that is accepted as a medium of exchange, but especially paper money

  42. Economics Foreign Exchange Market- a place where money from different countries is bought and sold for a price

  43. Economics Exchange Rate- the amount of one currency that can be purchased for a given unit of another

  44. Economics THE END

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