Free Trade Vocab

Question 1

Quota

Answer 1

a limit on the amount of a good that can be imported

Question 2

Embargo

Answer 2

Refusal to trade with another country

Question 3

Tariff

Answer 3

Fee/tax on a good that is transported to a country

Question 4

Imports

Answer 4

Goods or resources that are sold and sent out of the country

Question 5

Free Trade

Answer 5

Countries can import/export goods without government stopping it

Question 6

Exports

Answer 6

Goods or resources that are sold and sent out of the country

Question 7

Market Economy

Answer 7

Decisions made by individuals. Based on trade and competition. Also called free market or capitalism. Often lacks regulation or quality.

Question 8

Command Economy

Answer 8

Also called centrally planned economy. Government makes all decisions. (what to produce, controls, and redistribute wealth and resources, prices and wages.) No incentive to work hard.

Question 9

Mixed Economy

Answer 9

Combination of free market, and limited government involvement. Government in place to assure quality and regulation.

Question 10

Traditional Economy

Answer 10

Everyone pitches in, everyone benefits. (subsistence farming, hunting, gathering)