The most important concepts for the economics unit are the economic systems of the UK, Germany, and Russia. Students should understand which country has the easiest business regulations, who controls production and goods in each system, and who sets prices. The next most important topics are the different types of economic systems and where each country falls on the continuum from free market to command economy. Third are the four factors of economic growth - natural resources, capital goods, entrepreneurship, and human capital - and examples of each. Trade barriers like tariffs can help or hurt countries, while embargoes aim to be successful. Finally, knowing the currencies of the three countries and challenges of currency exchange are also important concepts.

1. Key Concepts from Unit 4 to Study (In order of most important)
Concept
What about it?
1. Econ Systems of UK, Germany, and
Russia
(pages 6 &7)
Which county is it easiest to start a business in? Who decides which goods will be produced and sold in
each country? Who owns the industries within the countries? Which country do buyers and sellers
usually come to agreement on prices in order to trade?Know the line of continuum
2. Types of Econ Systems
What are the questions that every economic system must answer? What type of economy is based on
customs? In what type economy does the government plays NO role in this economy; people are free to
exchange goods and services without government involvement or regulations? Which type of economy is
LEAST likely to be found in Europe?Know the line of continuum
(Pages 4,5, &12)
3. 4 Factors of Econ Growth
(Pages 8 &9)
Know examples of each Factor. What is a problem faced by entrepreneurs is Russia? What is a way that
entrepreneurs help increase a country’s GDP? Why is a country better off if it does not have to import
natural resources? What happens when a country does not invest in capital goods? What happens to a
country that does not invest in human capital?
4. Trade Barriers (Page 10)
How might a tariff be good for a country?How might a tariff be bad? What is limit on goods brought into
the country called? What might make an embargo against a country successful?
5. Currency Exchange
What is the currency of UK, Germany and Russia called?What is a problem with exchanging currency?