| A | B |
|---|
| economics | the social science that deals with production, distribution and consumption of goods and services. |
| economic system | the organized way that a government answers the following questions: what to produce, how to produce and to whom to produce. |
| literacy rate | the percentage of people in a country that can read and write. |
| traditional economy | system where resources are based on inheritance and social networking. |
| command economy | system in which the government makes the major decisions regarding the production and distribution of goods and services. |
| market economy | system in which consumers help determine what is to be produced by buying or not buying certain goods and services. |
| mixed economy | combination of command and market economies. |
| gross domestic product | the total market value of all goods and services produced by a country's economy during a specific period of time. |
| interdependency | being mutually dependent on one another. |
| capital | wealth in the form of money or property, used or accumulated in a business by a person, partnership, or corporation. |
| standard of living | how wealthy a person or country is |
| trade barrier | any government policy that restricts international trade. |
| tariff | a tax on imports or exports. |
| quota | a limit on how many products can be imported. |
| embargo | a ban on trade with another country or group of countries. |
| human capital | the set of skills which an employee acquires on the job, through training and experience, and which increase that employee's value in the marketplace. |
| currency | money, which passes at a fixed value from hand to hand. |
| entrepreneur | an individual who starts their own business. |
| specialization | to focus on a specific product. |
| volunteer trading | trading that occurs when both parties see thay will gain something from the exchange. |
