Economic Systems
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10 terms
Terms | Definitions |
|---|---|
 Economic System | The way a society produces gooods and services and provides and distributes these goods and services to its citizens |
| Communism (Strong Command) | Economic system in which there is strong governmental control; all productive resources are owned and operated by the government; competition is forbidden; and citizens have little or no freedom in selecting a career or workplace; practices heavy taxation |
| Socialism (Moterate Command) | Economic system in which there is medium governmental control; governmental control is held over key industries such as utilities and transportation; private ownership of business is only allowed in non-vital industires; allows competition in smaller private sectors; citizens have the right to choose career and place of empolyment; practices high taxation |
| Capitalism (market) | Economic system that derives forom the principle of individual rights; practices little governmental control; encourages private ownership of business in all sectors; supports competition in all areas; citizens have fulll freedom to choose career and workplace: Practices moderate taxation |
| Traditional Economies | Economic Systems that occur in less developed countries; allows economic decisions to be ruled by tradition; ranks religious and cultural values as omre important than economics; jobs are determined according to ancestors' jobs |
| Adam Smith | "Father of modern economics"; saw the market ystem acting as an "invisible hand" which leads people to unintentionally promote society's interests while pursuing their own. |
| Karl Marx | Intellectual father of modern day Marxist economies; predicted capitalism would be ultimately destroyed by its own inherent contradictions |
| John Maynard Keys | His ideas about the causes of unemployment revolutionized the macroeconomic theory and profundly altered the government's involvement in the economy |
| Private Enterpirse System | Synonymous with the market/capitalist economy; emphasizes the private sector; allows ownership of resources and business by individuals in society; permits individuals to make economic decisions rather than the government; allows individuals to receive benefits and wages from employers. |
| Rebecca Milam | 1st period |
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