Download Economic Terms

ECONOMIC TERMS
Economic System
 Your definition?
 Actual definition:
 The way in which a nation uses its
resources to satisfy people’s needs
and wants.
Economic System Questions
 What will be
produced?
 How will it be
produced?
 For whom will it
be produced?
Traditional Economy
 Your definition?
 Actual definition:
 An economic system in which social
roles and culture determine how
goods are made, sold, and bought.
Traditional Economy
Command Economy
 Your definition?
 Actual definition:
 An economic system in which the
government decides what goods will
be produced, how they will be
produced, and how they will be
distributed.
Command Economy
Market Economy
 Your definition?
 Actual definition:
 An economic system based on
individual choices and voluntary
trade.
Market Economy
Mixed Economy
 Your definition?
 Actual definition:
 An economic system that has
features of traditional, command,
and market systems
Mixed Economy
Command Economy vs. Market Economy
 View the video below. After viewing, click on
the cancel (x) button to return to the
presentation.
International Trade
 Your definition?
 Actual definition:
 The exchange of goods and services
between countries
International Trade
Imports
 Your definition?
 Actual definition:
 Goods brought into one country
from another through trade or sale
Import
Exports
 Your definition?
 Actual definition:
 Goods and services traded with or
sold to other countries
Export
Tariffs
 Your definition?
 Actual definition:
 A fee charged for goods or services
brought into a state or country from
another state or country
Currency
 Your definition?
 Actual definition:
 Money in any form that is accepted
as a medium of exchange, but
expecially paper money
Currency
Exchange Rate
 Your definition?
 Actual definition?
 The amount of one currency that can
be purchased for a given unit of
another
Exchange Rate
Natural Resources
 Your definition:
 Actual definition
 The natural wealth of a country (ex:
land, forests, mineral deposits,
water, etc)
Natural Resources
Entrepreneurship
 Your definition?
 Actual definition:
 Someone who brings together land,
labor, and capital goods to produce
goods and services
Entrepreneurship
Gross Domestic Product (GDP)
 Your definition
 Actual definition:
 The total market value of all the
goods and services produced by a
country during a specific period of
time
GDP