| A | B |
|---|
| trade barrier | anything that slows down or provents one coutnry from trading with another |
| tariff | a tax placed on goods imported from another country |
| quota | a limit set on the number of items that can be imported from another country |
| embargo | I will no longer trade with another country |
| specialization | products a country makes best and other countries want |
| self sufficient | when a country produces all the goods and services it needs |
| Israel | specializes in technology for farms (agriculture) |
| Saudi Arabia | specializes in oil |
| wants | things i wish to have |
| needs | things i must have (essential) |
| unlimited wants | the number of things I wish for |
| limited resources | non renewable resources that once used can never be replaced |
| trade surplus | when you export (sell) more than you import (buy from others) |
| market economy | profit little government influence |
| consumers | people who use goods and services |
| GDP | Gross Domestic Product |
| GDP | all the goods and services a country sells |
| Factors of Production | labor, natural resources, capital, entrepreneur |
| entrepreneur | who starts a business |
| labor | workers, employees |
| natural materials | trees, water, etc. |
| capital | equipment, machines used to make a product |
| command economy | government decides what to produce, who to produce it for |
| Traditional economy | every one has a defined role |
| market economy | profit is the motivation |
| competition | the rivalry amoung businesses to sell goods to the consumer |
| command | all resources are owned by the government |
| market economy | profit is primary motivation |
| profit | money you make after you pay all your expenses |
| command | Cuba & North Korea |
| traditional | customs passed down |
| market | captialism, free enterprise |
| traditional | farming hunting gathering |
| Economy | 1) what to produce 2) how to produce it 3) to whom will you produce it for |
| command | governments role is limited |
| mixed economy | most countries have this economic system |
| traditional | no economic growth |
| quota | allow only 1 million limit |
| blockade | ships off the coast of Cuba to prevent Cuba from getting supplies |
