Exploring Economic Concepts and Terms

Front

Which type of economy is most likely to rely on customs and traditions to make economic decisions?

Back

Traditional economy

Front

A country decides to ban all trade with another country. What is this action called?

Back

Embargo

Front

If a government sets a limit on the amount of a product that can be imported, what is this limit called?

Back

Quota

Front

Which economic system allows both private individuals and the government to make economic decisions?

Back

Mixed economy

Front

A country places a tax on imported goods to protect its own industries. What is this tax called?

Back

Tariff

Front

Which of the following best describes a market economy? Individuals and businesses make most economic decisions.

Back

Individuals and businesses make most economic decisions.

Front

If a country focuses on producing goods it can make most efficiently, what is this called?

Back

Specialization

Front

Which term describes the total value of all goods and services produced in a country in one year?

Back

Gross domestic product

Front

A person who starts a new business and takes on financial risks is known as a:

Back

Entrepreneur

Front

Which of the following is an example of a capital good? A factory machine, A tree in a forest, A worker’s education, A loaf of bread

Back

A factory machine