2.  1. What to produce?  2. How to produce?  3. For whom to produce?

3.  Customs and habits of the past help people decide what to produce, how to produce, and for whom to produce.

4.  Government planning groups make the basic economic decisions.

6.  Economic decisions are guided by changes that occur between buyers and sellers in the market place.

7.  There is NO PURE COMMAND or MARKET Economy!!! Cuba Germany U.K.

8.  TARIFF – a tax on imports (goods shipped into a country)

9.  Quota – a limit placed on the number of imports that may enter a country

10.  Embargo – a government order to stop trade with another country

11.  an area where there are NO tariffs between the countries in the zone  The European Union is an example of a Free Trade Zone.

12.  27 countries in Europe that work together to be a more powerful force in the world.  When together, they have more people, more$, and more land area. (This helps smaller European countries be more powerful.)

14.  The money people use to make trade easier  U.S.A. – U.S. Dollars  Russia – Rubles  Much of Europe – Euro

15.  the stuff, or people, that are necessary for businesses  Human Capital – workers  Physical Capital - supplies

16.  the total of all the goods and services produced in a country in one year

17.  Without natural resources, countries must import what they need from other countries.

18.  someone who risks his/her own money and time to create a business to make a profit

19.  The economic level of people in a country HIGH LOW

20.  the percentage of a country’s people who can read and write Literacy rate affects a country’s standard of living!!