Economics Review
Types of Economic Systems
1. Describe how goods and services are produced in a traditional economy. Customs and and traditions of the past decide how goods and services will be produced 2. Describe how goods and services are produced in a command economy. The government controls everything about how goods and services will be produced. 3. Describe how goods and services are produced in a market economy. The people have control of what goods and services are produced through the law of supply and demand. 4. Explain why we call most economies mixed. All economic systems have characteristics of both market and command. There are no pure economic systems.
Trade/Trade Barriers What is the purpose of a trade barrier? ​
To limit the amount of imported goods. Word Reminding Definition word import In goods that come in a country export out or exit goods that are sold to other countries quota limit a limit on the amount of imports embargo No cargo a ban on all trade with another country Tariffs Tax a tax on imports What is NAFTA? (pg76) The North American Free Trade Agreement allows for the 3 countries in North America to trade without any trade barriers. This means there are no quotas or tariffs between Canada, North America, and Mexico. Explain why people opposed NAFTA. What group of people protested the day it was passed? Americans were upset because it sent US jobs to Mexico. Mexican workers were upset because it forced several of their farms and businesses to shut down. The Zapatistas hate NAFTA and took over several towns in Mexico the day it was passed. Explain ​
HOW​
the following terms impact GDP​
: Do not define, tell how it increases GDP. 1. Human Capital Workers who are trained and healthy make the country more money
Example of human capital:​
flu shot, computer training, workshops
2. Physical Capital ​
Workers who have access what they need are more productive. Example of physical capital: A spray gun, computers, dump trucks
3. Entrepreneurs: ​
Someone who invest their time and money to start a business. Example of an entrepreneur:​
Steve Jobs started Apple 4. Natural resources: ​
gifts from nature Example of a natural resource: ​
gold, diamonds, oil
5. Arable land: ​
land that is good for farming
Example of a country with a lot of arable land: ​
United Kingdom 6. How does specialization encourage trade between countries? Countries do not have or make everything they need. Instead, they get really good at making certain items. This allows them to mass produce these items and trade with other countries.
Examples: Put the following countries in the correct box: UK, Germany, Russia, Cuba, Brazil, Canada, Australia Command Economy Market Economy Russia, Cuba UK, Germany, Russia, Brazil, Canada, Australia Explain the role of the entrepreneur Explain the role of the entrepreneur for for these countries. these countries. There are no entrepreneurs in this Entrepreneurs are important for the country. The government owns economy. They provide jobs and stimulate everything. the economy. Economic Continuum Place the following countries on the scale: UK, Germany, Russia, Cuba, Brazil, Canada, Australia Cuba Russia
World Currency
Brazil Germany UK Australia Country/Area Name of currency Canada Canadian Dollar Mexico Peso United States United States Dollar Cuba Peso Brazil Real Russia Ruble Australia Australian Dollar Many parts of Europe Euro Explain why countries have to exchange currency when traveling internationally. Every country has their own country type of currency. Other important Words
Word Define literacy rate The percentage of people who can read and write third world countries a country who has not been developed GDP Gross Domestic Product- the amount of money a country makes in one year GDP per capita The amount of money each person in a country makes in one year (Average) standard of living The amount of material wealth a person or country has Explain how literacy rate impacts a person’s standard of living. (min 8 sentences) - Literacy rate is the percentage of people who can read and write. A country who has a high literacy rate usually has a higher standard of living. Standard of living is how much material wealth a person or country has. Generally, people who are educated make more money over a lifetime. It is important that countries invest in their citizen’s education, because this increases GDP.