Unit 3 Vocabulary

1. acid rain - rain that has an unusually high acidity level. Caused by air pollution. Destroys plant life and erodes buildings and statues. Especially bad in Germany 2. entrepreneur - the person who brings together the human, capital, and natural resources in order to create a product. Business owners. 3. human capital - the people who take part in the production process. Often referred to as human resources. Human capital can be invested in the form of education, training, or health care. 4. currency - the system of money a country uses. 5. embargo - a trade barrier that completely eliminates trade between two countries. 6. quota - a trade barrier that limits the amount of a good or product that can be imported or exported. 7. per capita GDP - the average amount of wealth available to individuals in a country. Found by dividing the GDP by the total population. 8. air pollution - unnatural pollutants released into the atmosphere. Caused primarily by car exhaust and factories. Especially bad in United Kingdom 9. tariff - a tax added to the price of an imported good. Also another example of a trade barrier. 10. Chernobyl - the city in Ukraine that experienced a nuclear disaster in 1986. A nuclear reactor exploded contaminating the surrounding areas with lethal levels of radiation. 11. capital investment - spending money on the tools, technology, and machinery used in the production process in hopes of becoming more productive. 12. capital resources - the tools, technology and machinery used in the production process. 13. GDP - the value of all goods and services produced in a country in one year. 14. human resources - the people that take part in the production process 15. mixed economy - an economy that has elements of both market and command economies. Ex: the U.S. is a mixed economy, but we have more market elements. 16. exchange rate - used to compare the value of two different currencies. 17. natural resources - the naturally occurring, raw materials used in the production process. Ex: sugar, peanuts, oil, iron ore. 18. command economy - an economy where the government decides what to produce, how to produce it and who to produce it for. 19. market economy - an economy where private citizens decide what to produce, how to produce it and who to produce it for. 20. traditional economy - a primitive, old-fashioned economy that relies on barter or trade instead of money.