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  1. 1. Economics
  2. 2. Economics Vocabulary List <ul><li>Exchanging currencies </li></ul><ul><li>Gross Domestic Product </li></ul><ul><li>human capital </li></ul><ul><li>Capital </li></ul><ul><li>Investment in capital and human capital </li></ul><ul><li>Foreign exchange </li></ul><ul><li>Entrepreneurship </li></ul><ul><li>Capital resources </li></ul><ul><li>Command Economy </li></ul><ul><li>Traditional Economy </li></ul><ul><li>Market Economy </li></ul><ul><li>Mixed Economy </li></ul><ul><li>Voluntary Trade </li></ul><ul><li>Specialization </li></ul><ul><li>Quotas </li></ul><ul><li>Embargoes </li></ul><ul><li>Tariffs </li></ul>
  3. 3. Types of Economy <ul><li>Command - p.106 – The government controls what is produced and how it is produced in a command system. The government owns the resources and decides who gets the products. </li></ul>
  4. 4. Traditional <ul><li>Traditional - p. 106 </li></ul><ul><li>This system is found in agricultural societies where people live the same way their parents and grandparents did. People in these systems produce what they need to survive by farming or hunting and gathering. They make their own clothing and tools, and trade any extra food or items with others in their society. </li></ul>
  5. 5. Market <ul><li>Also supply and demand </li></ul><ul><li>In a market system, a country’s economic decisions are based on what its people want to buy and sell. People can own their own businesses and produce what they want. In a market economy, supply and demand for a good and service determines what to produce and how to produce it. Producers will make their product in the way that costs them the least amount of money so they can make a profit. </li></ul>
  6. 6. Mixed Economy <ul><li>It is making a transition from an almost completely command economy to a market economy. Mixed economies fall between pure market and command economies. </li></ul>
  7. 7. Voluntary Trade <ul><li>It happens when both parties expect to gain from the trade. The buyer is happy purchasing an item at a good price, while the seller is happy making a profit. </li></ul>
  8. 8. Specialization <ul><li>Countries specialize in what they do best. Specialization is an efficient way to work, and the cost of items produced is lower. </li></ul>
  9. 9. Trade Barriers and Corridors <ul><li>Tariffs – are taxes placed on imported goods. Tariffs cause the consumer to pay a higher price for an imported item, increasing the demand for a lower-price item produced domestically. </li></ul>
  10. 10. Embargoes <ul><li>Trade embargoes don’t allow trade with another country. Countries can not import or export any items in their country or out of their country. </li></ul>
  11. 11. Quotas <ul><li>Quotas are restrictions on the amount of a good that can be imported into a country. Quotas can cause shortages that cause prices to rise. </li></ul>
  12. 12. Today’s Closing: Exit Slip <ul><li>Quotas </li></ul><ul><li>Embargoes </li></ul><ul><li>Tariffs </li></ul><ul><li>Voluntary Trade </li></ul><ul><li>Specialization </li></ul><ul><li>Exchanging currencies </li></ul><ul><li>Gross Domestic Product </li></ul><ul><li>human capital </li></ul><ul><li>Capital </li></ul><ul><li>Investment in capital and human capital </li></ul><ul><li>Foreign exchange </li></ul><ul><li>Entrepreneurship </li></ul><ul><li>Capital resources </li></ul>
  13. 13. Middle East Physical Barriers
  14. 14. Foreign Exchange/Exchanging Currencies <ul><li>Money from one country must be converted into the currency of another country to pay for goods in the country. </li></ul><ul><li>Currency – the type of money a country uses </li></ul>
  15. 15. Factors that influence economic growth <ul><li>Human capital – people who perform labor </li></ul><ul><li>Capital – factories and machinery </li></ul><ul><li>Natural Resources – things that come from the land like minerals or trees </li></ul><ul><li>Entrepreneurship – ideas, innovation, and risk involved in starting a business </li></ul>
  16. 16. Investment in…….. <ul><li>Investment in human capital – providing education and healthcare to workers </li></ul><ul><li>Investment in capital resources – factories, machinery, or technology </li></ul>
  17. 17. Gross Domestic Product (GDP) <ul><li>Economists measure a nation’s economic performance by a standard called Gross Domestic Product (GDP). Economists use it to determine the health of a company’s economy and compare it to other economies. </li></ul>