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24 terms

Economic Systems- Unit 3

STUDY
PLAY
Command Economy
An economic system in which the government makes all economic decisions.
Mixed Economy
An economy in which private enterprise exists in combination with a considerable amount of government regulation and promotion.
Market Economy
Economic decisions are made by individuals or the open market.
Three Goals of Economic Systems
1. Stable Prices, 2. Low Unemployment, 3. Economic Growth
Gross Domestic Product
The sum total of the value of all the goods and services produced in a nation
Per capita Income
The average amount of money earned by each person in a political unit.
Laissez-faire
Idea that government should play as small a role as possible in economic affairs. LET IT GOOOO
Developed Countires
these regions economies are based more on manufacturing and services. These regions have a higher GDP and are wealthier becasue they can accumulate resources
Developing Countires
Generally poorer nations with high birth rates, low rates of education and health care , and containing about 80 percent of the world's population (more agriculture industries)
Traditional Economy
An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.
Cold war
A conflict that was between the US and the Soviet Union. The nations never directly confronted each other on the battlefield but deadly threats went on for years.
Communism
A political system in which the government owns all property and dominates all aspects of life in a country. The end goal is to get rid of the need for a government and class system
Capitalism
An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.
Trade
Exchange of goods and services
Subsidies
A grant or contribution of money, especially one made by a government in support of an undertaking or the upkeep of a thing
Imports
goods produced abroad and sold domestically
Exports
Goods and Services sold to other countries
Trade Surplus
when a country exports more than it imports
Trade Deficit
An excess of imports over exports
Trade barriers
Taxes, quotas, and other restrictions on goods entering or leaving a country.
Quotas
A limit on the amount of imports into a country
Incentive
Something that encourages greater action or effort, such as a reward
Freeloader
A person who uses money, food, a room in a house, etc. given by other people, but who gives nothing to them in exchange
Efficient
being effective without wasting time or effort or expense