Economics Terms Preview

The level of wants and needs that are met by a society.

The percentage of adults in a country that can read and write in their first language. High literacy rates usually result in high standards of living for a country.

Education and training. This allows people to make more complex products or make their current products more efficiently. Both of these raise the standard of living and the GDP in a country.

Tools and machinery that are used to make consumer goods and services. These also allow people to make more complex products or make current products more efficiently. Both of these result in a higher standard of living and GDP in a country.

The total value of all the goods and services produced in a country in a year.

Total GDP divided by the number of people living in the country. It shows production per person and is a better measure of the wealth of a country.

Economic system where what to produce, how to produce it, and who to produce it for is based on traditions and customs. No countries use this for a national economy.

Economic system where what to produce, how to produce it, and who to produce it for is decided by producers and consumers. The government does not interfere in a pure market economy. There are no pure market economies in the world today.

Economic system where what to produce, how to produce it, and who to produce it for is decided by the government. A central government plans all economic decisions in a pure command economy. There are no pure command economies in the world today.

Economic system where what to produce, how to produce it, and who to produce it for is partially decided by producers and consumers and partially decided by the government. All national economies today are mixed and lean either more to the command or more to the market side of an economic continuum line.