Economics Vocabulary

1. A trade barrier which places a tax on imported goods (goods shipped from another country)
4. an exchange of one good/service for another
6. A material on or in the earth that has economic value; “gifts of nature”
7. An economic systems in which the government makes all decisions
8. An economic system in which all decisions are based on customs, traditions, and history
12. An economic system in which decisions are made by businesses as a result of supply and demand - no government involvement
13. When someone takes a risk and uses natural resources, capital goods, and human capital to start their own business
14. The knowledge, skills, and relative health of a nation’s labor force (people that do work)
15. A trade barrier which blocks all trade with another nation

1. anything that slows or blocks the free exchange of goods and services between nations
2. the percent of a nation’s population (over the age of 15) who are able to read and write
3. The approximate value of one nation’s currency in terms of another’s
5. When a country focuses on producing the goods and services they can make the best
9. Something assigned value that can be used to purchase goods and services
10. A trade barrier which places a limit on imported goods
11. The factories, machinery, technology, etc. that are necessary to sustain a service or industry