Ch. 2 Vocab
Terms in this set (29)
Economic system in which the allocation of scarce resources, and other economic activity, is the result of ritual, havit, or custom. Also dictate most social behavior. Roles defined by the customs it their elders.
Economic system characterized by a central authority that makes most of the major economic decisions about WHAT, HOW, and FOR WHOM to produce. King, dictator, president, tribal leader etc.
Organized way a society provides for the wants and needs of its people.
Economic system in which supply, demand, and the price system help people allocate resources and make the WHAT, HOW, and FOR WHOM to produce decisions; same as free enterprise economy.
Economic system that has some combination of tradition, government, command, and markets; also see modified free enterprise economy. Each answer WHFW Q's.
National policy avoiding international alliances and economic interactions.
Lack of movement.
Economics for political system in which govt. owns some factors of production and has a role in determining what and how goods are produced.
Meeting place or arrangement through which buyers and sellers interact to determine price and quantity of an economic product; may be local, regional, national, or global.
Economic system in which private citizens own and use the factors of production in order to generate profits for their own gain.
Society would then eventually reach a theoretical ideal. State of economic and political affairs where everyone would contribute according to his or her abilities and consume according to his or her needs. Factors of production are collectively owned and directed by the state. Where everyone works for the common good.
Economic philosopher (1818-1883) -The Communist Manifesto-Marxism- Das Kapital (theory of capitalism)
Worst period of economic decline in U.S. history, lasting from approximately 1929 to 1939. Unemployment insurance, the min. Wage, and bank deposit insurance programs created.
GDP Per Capita
Gross domestic product on a per person basis; can be expressed in current or constant.
Conversion of state-owned factories and other property to private ownership.
Certificates that could be used to purchase government-owned property during privatization. We're either given or sold.
Comprehensive, centralized economic plan used by the Soviet Union and China to coordinate development of agriculture and industry. Was introduced by Joseph Stalin in 1927.
Central planning authority in the former Soviet Union that devised and directed Five-Year Plans. Tried to manage the economy by assigning production quotas.
Forced common ownership of factors of production; used in the former Soviet Union in agriculture and manufacturing.
Fundamental restructuring of the Soviet economy; policy introduced by Gorbachev. Had more freedom to pursue profits and small business was encouraged.
Great Leap Forward
China's second Five-Year Plan, begun in 1958, which forced collectivization of agriculture and rapid industrialization. Forced farmers to work on large, state-owned communal farms.
Shift of an economy, or part of an economy, from private ownership to govt. ownership.
Independent and sometimes illegal (Polish) labor union founded in 1980 by Lech Walesa.
Established in 1993 by the Maastricht Treaty, its 28 member countries make it the largest single unified market in the world in terms of population and output. Single market with full economic and political cooperation; successor of the European coal and steel community.
Market in which goods and services are sold illegally. Most "western" communist bloc country w/ a BM.
Production process requiring large amounts of capital in relation to labor.
Independently owned group of Japanese firms joined and governed by an external board of directors in order to regulate competition.
Number of people per square mile of land area. SK,Asia
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