The study of the production, distribution and consumption of goods
What are 3 trade barriers?
tariff, quota, embargo
a tax on imports and exports
a limit on how much you will trade
eliminating trade with another country
What is "capital?"
Machinery and technology
What is "human capital?"
Education, healthcare or training
What are the 3 main economy types?
Mixed, Market and Command
The GOVERNMENT answers the 3 economic questions
Both the CITIZENS and the GOVERNMENT answer the 3 economic questions
The CITIZENS answer the 3 economic questions
Competition and consumer choice are key components for a ____ economy
A combination of privately owned industry and government control is a good description of a ___ economy
A person who starts their own business (risky)
Gross Domestic Product - total value of all the goods and services produced in a country in a given year
To keep imports out
Purpose of the Euro
Encourages trade between member nations
3 Economic Questions
What to produce? How to produce? For whom to produce?
Relationship between GDP and Human Capital
As a country invests in human capital, the GDP will increase (and vice-versa)
How does the prescence (or abundance) of natural resources affect the economy?
It helps the economy, because that country has more to export
How does buying resources from other countries hurt another country's economy?
If you are buying from another country, you are investing in their economy, not your own
What is interdependence?
When both countries depend on each other
What is scarcity?
Conflict between limited resources and unlimited wants.