Economic Vocabulary

Economics

The study of how people satisfy their wants and needs/ the study of supply and demand.

Traditional Economy

People are concerned mainly with obtaining food, clothing, shelter, and other necessities.

Command economy

Operate at the will of the government.

market economy

Operate in response to the laws of supply and demand, respond to make forces such as scarcity of goods and resources

Globalization

The reduction of barriers to the movement of goods and services, workers, and money among nations

Economic systems

A system of production, resource allocation, and distribution of goods and services within a society or given geographical area

Bourgeoisie

Midd class.

Gross Domestic Product

The sum of all goods and services produced in a country within one year.

Laissez-faire

"Hands off" approach to the economy. Little to no government interference.

Means of Production

The facilities and resources for producing goods.

Proletariat

Workers, working-class people

Subsidy/subsidize

Government provides financial support

Capital

Wealth

State

A group of people in a. defined geographical area with a government that is recognized as a political unit by the international community

Nation

A group of people united by their shared commonalities but not recognized by the international community

Nation-State

A group of people united by their shared commonalities in a geographical area with a government that is recognized as a political unit by the international community

Nationalism

Identification with one's own nation and support for its interests, especially to the exclusion or detriment of the interests of other nations

Principle of Sovereignty #1

Countries should respect the borders of other countries and not use force to change them

Principle of Sovereignty #2

Countries should not interfere with other countries' domestic areas

Principle of Sovereignty #3

Governments should have complete authority within their borders

Cultural Diffusion

The spreading out and merging of pieces from different cultures.