Social Studies Economics (Unit 3)
What does Germany have that keeps it growing?
Exports machinery, Chemicals, Household goods
Voluntary Trade
Trade that benefits all people / countries involved; everyone involved agrees to trade
What does Russia have that keeps it growing?
Used to be communist; it is striving to be a market economy; government investment
Embargos
A government order prohibiting the movement of merchant ships / planes trading in and out of its ports. A government restriction on trade with a foreign nation.
Mixed Economy
A mix of different economic systems - some businesses are owned by the government and others are privately owned.
Human Resource / Human Capital
A person who has skills for a job; a worker or an employee (teachers, carpenters, cashiers)
Economist
A person who studies economics.
Entrepreneur
A person who takes risks to start a business; someone who owns a business
Assembly Line
A process used for the mass production of goods.
Industrial Service
A service performed at a producer level - like a bank hiring an armored car to move money.
Consumer Service
A service performed for a customer at the consumer level (haircut).
Goods
A tangible product which may be sold to a consumer or another industry.
Traditional Economy
An economy where people use the same work methods and tools generation after generation.
Command Economy
An economy where the government owns the country's resources and businesses.
Currency
Anything that people exchange for a good or service (money, cash, coins, bartering)
Geographic trade barriers
Big geographic features that prevent easy trade (mountains, oceans, large deserts).
Private
Businesses owned by citizens
Public
Businesses owned by government organizations (schools, libraries, fire and police stations)
Russia
Command Economy - Growing
Who owns the businesses and farms in Russia?
Government
Capital Resources
Machines and tools that are used in producing.
Capital
Machines and tools used in producing
Maximizing Profit
Making the difference between revenues and costs as large as possible.
Germany
Market Economy - Growing
UK
Market Economy - Growing
Renewable Resources
Natural resources that can be replaced after being consumed.
Non-Renewable Resources
Natural resources that cannot be replaced after being consumed - or those that take too long to replace.
What does the UK have that keeps it growing?
Oil, Natural Gas, Coal
Who owns the businesses and farms in Germany?
Private citizens and corporations
Who owns the businesses and farms in the UK?
Private citizens and corporations
Tariffs
Taxes that the government puts on imported or exported goods.
GDP per capita
The GDP divided by the population of the country
Quotas
The amount of something that is allowed or admitted.
Profit
The difference between the revenue (or income) that a business gets for its goods and services and the cost of producing the goods and services.
Free Market Economy
The market determines what goods and services are produced (US)
Economics
The production, consumptions, and distribution of goods and services.
Goods and Services
The results of production; consumer and industrial.
International Trade
The sale of goods or services across country borders; trade between different countries
GDP
The total amount / value of all goods and services produced in a country in a year
Producing
The way that societies turn resources into goods and services.
Production
The way that societies turn resources into goods and services.
Labor
The work that is being performed - could be physical, mental, or both.
Factors of Production
These may be combined in many ways and they include natural resources, labor, capitol and other products.
Capital Resource / Capital Goods
Things needed to make other goods
Other Products
What a factory might use to create a product - these are produced elsewhere.
Pure Market Economy
When private citizens own all the businesses in a country and there is little government involvement.