Post on 23-Dec-2015
Economies
Economics
Supply of human skills, natural goods, and capital goods
Goods and Services
Products or services sold to a consumer or another industry
Gross domestic productGDP
• The total amount of goods and services produced in a country
Four Factors of Production
• Human capital• Capital goods• Natural Resources• Entrepreneurship
Human capital
The value that peoplebring to the workplace
Capital goodsGoods used to make products
Natural resources
Resouces that come from the Earth such as trees, fresh water,Soil, plants or animals
entrepreneurship
A person who takes on the risk and possible reward of operating a new business
Types of economies
• Traditional• Command• Market
Traditional economy
• Economy dominated by methods and techniques that have strong social support even though they may be out of date
Command economy
• An economy that is planned and controlled by a central administration
Market economy
• Economy that operates by voluntary exchangein a free market and is not planned or controlled by a central authority—a capitalistic economy
Types of capital investments
• Factories• Machinery• Technology
Trade Barriers
• Tariffs• Quotas• Embargoes
Tariffs
• Taxes on goods coming into a country
quotas
• Limits on the number of goods that can be imported from a certain country
embargo
Ban on trade with another country