TERMS

Economic Terms Key

1.free market economy (a.k.a. traditional economy) when the people decide what is produced and how much it costs

2.command economy when the judicature decides what is produced and how much it costs
*these are usually found in communistic countries like North Korea and Cuba

3.capitalism when the producers decide how much to dissipate for something

4.scarcity when you dont have much of something (example: in a desert, theres a scarcity of water). A country experiencing a scarcity of something will be involuntary to trade with other countries to get it, even if it means theyre cheating themselves or paying withal much.

5. strength when you do one thing well (example: Japan has a specialization in technology and the USA has a specialization in car parts). A country with a specialization in one area is considered to be the best and is often qualified to charge more for their product.

6.producing making something (for sale)

7.Factors of production:
1. Land, which requires an investment in real estate and upkeep; weed also be affected by natural resources (cant put a factory in a desert because theres no water to use, etc.) If the land is mountainous, it may be too difficult to build a factory.
2. Labor, which means the human turners.



This requires a great deal of upkeep because workers must be kept healthy, however policy and medical care can be very expensive. retentivity good workers means you have to pay them more or somehow make them want to keep coming to work for you, which ultimately can raise the cost of your product…and zip wants to buy expensive products.
3. Capital, which means money. If theres whatever sort of political instability (like a war or corrupt government) in a country, all of the countrys financial resources are going toward the war and/or government, so nobody really has money to invest. If the commonwealth is highly educated, you cant start up just any factory. If the population is mostly...If you want to get a full essay, order it on our website: Orderessay



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