| A | B |
|---|
| economics | the study of how people or countries manage (choose to use) their limited resources by producing, exchanging, and using goods and services |
| entrepreneurship | bringing together natural, capital, and human resources together and take risks to develop businesses |
| command economy | economic system in which the government decides what will be produced, how it will be produced and how it will be distributed |
| market economy | economic system in which the people decides what will be produced, how it will be produced and how it will be distributed |
| mixed economy | economic system in which the government and people share the role in deciding what will be produced, how it will be produced and how it will be distributed |
| specialization | when a country focuses resources on creating fewer specific products and services than they consume |
| trade barriers | governmental policies that restrict, the entry of products into a country |
| tariff | tax on imports |
| quota | limiting the amount of products that can come into a country |
| embargo | cutting off trade to a certain country because of political reasons |
| currency | money |
| exchange rate | the rate at which one unit of the currency of a country can be traded for a unit of the currency of another country |
| human capital | Labor that is done by people in order to produce products |
| capital goods | the machines, tools, factories, land, and technology that are needed to make other products |
| natural resources | raw materials used to make products or “gifts of nature” |
| Gross Domestic Product | the amount of products and services produced in one country in one year |
| trade | voluntary exchange of products and services |
| import | a product brought into a country through trade or sale |
| export | a product leaving a country through trade or sale |
| traditional economy | economic system in which social roles and culture decide what will be produced, how it will be produced and how it will be distributed |
