Economic Vocabulary economic vocabulary

Term Definition
Currency money used in a particular country to buy goods and services.
specialization really good at making one or more things
trade barriers ways of limiting trade
tariff tax on imported goods
quota Limit placed on the number of imports that may enter a country.
Embargo Government order to stop trade with another country to put pressure on another country
imports goods coming into a country(buy from other countries)
natural trade barriers mountains, rivers, oceans, deserts (barriers created by nature)
NAFTA North America Free Trade Agreement-signed in 1994 by the United States, Canada, and Mexico eliminating tariffs
exports goods leaving a country(Sell to other countries)
EU European Union-a group of 27 European countries united to improve trade, education, farming, and industry among the members
Exchange Rate price of one nation's currency in terms of another nation's currency
Human capital (human resources)-workers of a business or country including their education, training, skills, and health
Capital goods (capital resources or physical capital)-factories, machines, technologies, buildings, and property needed for a business to operate
GDP Gross Domestic Product-the total value of all the final goods and services produced in a country in one year
Literacy being able to read and write
Standard of Living the degree of wealth and material comfort available to a person or community
Natural Resources materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.)
entrepreneur person or persons who take risks to open up a business
profit making money
Traditional Economy based on customs and beliefs (farming, hunting)
Command Economy Government controls everything
Market Economy Based on what people want to buy and sell (supply and demand)
Mixed Economy falls in between pure market and pure command (has some of both economies

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