Economics of Europe

Front

In this type of economic system, the government makes all the decisions.

Back

Command Economy

Answer explanation

§Government makes all economic decisions & owns most of the property

§Governmental planning groups determine such things as the prices of goods/services & the wages of workers

Front

What is a traditional economy?

Back

In this type of economic system, people follow their customs or traditions and make what their ancestors made.

Answer explanation

A traditional economy decides what to produce based off tradition - the same thing is produced generation after generation.

Front

In this type of economic system, businesses base decisions on supply and demand and free enterprise.

Back

Market Economy

Front

A term used in a traditional economy that means "to trade"

Back

Barter

Front

This type of economic system is found in MOST COUNTRIES where businesses decide what to produce

Back

Mixed Economy

Front

Taxes on imported goods

Back

Tariff

Front

This puts a limit on the quantity of goods that are imported

Back

Quota

Answer explanation

A Quota only allows a certain Quantity into the country.

Front

This is a complete ban on trading between countries. It is also the HARSHEST type of trade barrier.

Back

Embargo

Front

What is free trade?

Back

Nothing hinders or gets in the way from two nations trading with each other.

Front

Trade is difficult because things get in the way. This is called ___________ ___________.

Back

Trade Barrier