Economy and Work

Economy

A system that encompasses the production, distribution, and consumption of goods and services in a society.

Goods

Tangible items produced for sale, which can range from necessities to luxury items.

Services

Intangible activities or benefits provided to consumers that include sectors like healthcare, education, and entertainment.

Agricultural Revolution

A time when early societies transitioned from hunter-gatherer lifestyles to distinct economies through farming and settlement.

Industrial Revolution

A period characterized by new sources of energy, mass production techniques, and a shift from agrarian to industrial labor patterns.

Post Industrial Society

An economy based on technology and services rather than manufacturing, emphasizing knowledge-based jobs and information technology.

Primary Sector

The sector that generates raw materials from the environment, including agriculture, mining, and forestry.

Secondary Sector

The sector that transforms raw materials into manufactured goods through processes such as manufacturing and construction.

Tertiary Sector

The sector that generates services rather than goods, focusing on support and assistance to individuals and organizations.

Global Economy

The interconnectedness of national markets through alliances and trade agreements, affecting job security and economic dynamics.

Capitalism

An economic system where resources and means of production are privately owned, promoting individual initiative and competition.

Socialism

An economic system in which resources and means of production are collectively owned by the state, emphasizing equitable distribution of wealth.

Key Feature of Capitalism

Private ownership of property, pursuit of personal profit, and competition which encourages consumer choice.

Key Feature of Socialism

Collective ownership of property, pursuit of collective goals, and government control of the economy for community benefit.

Capitalism vs. Socialism: Economic Productivity

Capitalist countries tend to produce more wealth (higher GDP), while socialist countries generally have more equitable distribution but lower GDP.

Personal Freedom in Capitalism

Individuals have the freedom to pursue personal self-interest and wealth creation.

Personal Freedom in Socialism

Focus on ensuring everyone's basic needs are met, with less emphasis on individual wealth accumulation.

Economic Inequality in Capitalism

Greater income disparity with significant gaps between rich and poor.

Economic Inequality in Socialism

Less income disparity and more equitable wealth distribution among the population.