Europe Unit 3 Flashcards

Front

Command Economy

Back

An economy that is planned and controlled by the central government.

Front

Pure Command Economy

Back

There is no pure command economy. Central governments can do whatever they see fit to make citizens productive.

Front

Market Economy

Back

An economy where the prices of goods and services are determined by supply and demand, not controlled by the government.

Front

Human Capital

Back

Labor: the value that people bring to the workplace. Examples include education, insurance, good healthcare, and job training.

Front

Entrepreneur

Back

A person who takes a risk to start a business with the goal of earning a profit.

Front

Embargo

Back

A government order to stop trade with another country to pressure its government. Example: The EU prohibiting the import of meat products from animals treated with growth-promoting hormones.

Front

Tariff

Back

A tax on imported goods (e.g., the US taxes 30% on all softwood coming into the US from Russia).

Front

Physical Trade Barriers

Back

Natural formations that make trade difficult, such as mountains (e.g., Alps, Urals).

Front

High GDP

Back

High Literacy Rate + High Standard of Living = High GDP (Gross Domestic Product).

Front

GDP

Back

The total value of goods and services produced in a country in a year.