Economic Systems Cartes | Quizlet

Barter / bartering

a medium in which goods or services are directly exchanged for other goods and/or services without the use of money.

Capitalism

an economic system in which the means of production are all or mostly privately owned and operated for profit, and in which investments, distribution, income, and the pricing of goods and services are determined through the operation of a market economy.

Collectivism

A system in which some things should be owned by the group and used for the benefit of all rather than being owned by individuals. Central to this view is the concept of the commons, as opposed to private property.

command economy

Synonymous with "Planned economy", the means of production are publicly owned.

Commodity/ staple commodity

Raw materials, such as fish, fur, lumber, agricultural products and minerals that a country produces and trades.

For example, in Canada these goods were exported to Europe and this trading link cemented Canada's cultural links to Europe. The search for and exploitation of these staples led to the creation of institutions that defined the political culture of the nation and its regions.

Communism

An ideology that seeks to establish a classless, stateless social organization based on common ownership of the means of production.

Competition

This gives incentives for self improvement.

If two watchmakers are competing for business, they will lower their prices and improve their products to increase their sales. If birds compete for a limited water supply during a drought, the more suited birds will survive to reproduce and improve the population.

consumption

The selection, adoption, use, disposal and recycling of goods and services.

Forecast / forecasting

the process of estimation in unknown situations.

Free-market economy

The relationship between economic freedom and political and civil freedoms.

Free trade

A market model in which trade in goods and services between or within countries flow unhindered by government-imposed restrictions.

Restrictions to this include taxes and other legislation, such as tariff and non-tariff trade barriers.

Global / globalization

The convergence of prices, products, wages, rates of interest and profits towards developed country norms.

Globalization of the economy depends on the role of human migration, international trade, movement of capital, and integration of financial markets.

A goal/ objective / target

A projected state of affairs which a person or a system plans or intends to achieve or bring about — a personal or organizational desired end-point in some sort of assumed development.

Many people endeavor to achieve these by setting finite deadlines.

Green economy

This economy aims at addressing the interdependence of human economies and natural ecosystems with a view to preventing the adverse impact of human economic activities on resource depletion, environmental pollution, climate change and global warming.

Growth

An increase, as in size, number, value, or strength; extension or expansion: population growth.

"Hands off"

An economic systems that gives more power to private individuals (and perhaps corporations) and tends to limit government involvement in the economy, its primary concern being private property.

"Hands on"

An economic systems involve a greater role for society and/or the government to pick goods and services, with the stated aim of ensuring social justice and a more equitable distribution of wealth.

Implementation / to implement

The carrying out of public policy

Incentive

Any factor (financial or non-financial) that provides a motive for a particular course of action, or counts as a reason for preferring one choice to the alternatives.

Inheritance

The practice of passing on property, titles, debts, and obligations upon the death of an individual.

It has long played an extremely important role in human societies.

Internet economy

Conducting business through markets whose infrastructure is based on the Internet and the web.

Knowledge economy

An expression that refers either to an economy of knowledge (knowledge is a product) focused on the production and management of knowledge in the frame of economic constraints, or, more frequently, to a knowledge-based economy (knowledge is a tool) that relies on the use of knowledge technologies (such as knowledge engineering and knowledge management).

Labor (US) / Labour (GB)

A measure of the work done by human beings. It is conventionally contrasted with such other factors of production as land and capital.

laissez-faire

Strict capitalist free market economy during the early and mid-19th century and as an ideal to achieve thanks to the complete absence of government regulation, subsidies, artificial price pressures, government-granted monopolies, and no taxes or tariffs (other than what is necessary for maintaining peace and property rights).

Liberalization / to liberalize

Often associated with privatization, however it can be quite a separate processes.

For example, the European Union has liberalized gas and electricity markets, instituting a system of competition; but some of the leading European energy companies (such as EDF and Vattenfall) remain partially or completely in government ownership.

market economy / market-based economy ≈ market-oriented economy

An economy based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand.

Means of production

The combination of the means of labor (machines, tools, plant and equipment, infrastructure, and so on) and the subject of labor (the material worked on) used by workers to make products.

Mixed economy

The price system is not entirely free but under some government control or heavily regulated, which is sometimes combined with state-led economic planning that is not extensive enough to constitute a planned economy.

nationalization / to nationalize, to bring into public ownership

The act by which a nation takes possession of assets without requiring requiring the owner's consent, with or without payment of compensation.

participatory economics / parecon

This economic system uses participatory decision making as an economic mechanism to guide production, consumption and the allocation of resources in a given society.

It has been proposed as an alternative to contemporary capitalist market economies as well as to centrally planned socialism.

Planned economy

The central government determines the price of goods and services used a fixed price system.

Policy: economic policy / public policy /environmental policy / company policy

political decisions for implementing programs to achieve societal goals

Price control

contrôle des prix

ex: duirng WWII, this strategy was used in attempt to control wartime inflation

Privatization: to privatize, to carry out privatization

The transfer of ownership from the public sector (government) to the private sector (business).

A transfer in the opposite direction could be referred to the nationalization of some property or responsibility.

Productivity

The amount of output created (in terms of goods produced or services rendered) per unit input used.

For instance, labour ________________ is typically measured as output per worker or output per labour-hour. With respect to land, the "yield" is equivalent to "land _____________________".

A proponent

un partisan

Ex: In environmental policy, it's person or organization that proposes carrying out an activity that may have a positive effect on the environment.

raw materials

matières premières

Materials in their unaltered, natural state, are first extracted or harvested from the earth and divided into a form that can be easily transported and stored. The raw materials are then processed to produce "semi-finished materials". These can be input into a new cycle of production and finishing processes to create "finished materials", ready for distribution and consumption.

Regulation

Legal restrictions promulgated by government authority.

Common examples: attempts to control market entries, prices, wages, pollution effects, employment for certain people in certain industries, standards of production for certain goods and services.

Resources

The total means available for economic and political development, such as mineral wealth, labor force, and armaments.

Scarcity

rareté, pénurie

a small and inadequate amount

Shortage

manque, insuffisance, pénurie

Critics of planned economies argue that planners cannot detect consumer preferences, shortages, and surpluses with sufficient accuracy and therefore cannot efficiently coordinate production.

Socialism

An economic system that is often characterized by socialized (state or community) ownership of the means of production.

Socialist market economy

Within this type of economy, macroeconomic plans are used as general guidelines and as government goals for the national economy, but the majority of state-owned enterprises are subject to market forces.

The People's Republic of China currently has this type of economy in place.

Standard of living

niveau de vie

The quality and quantity of goods and services available to people, and the way these goods and services are distributed within a population.

It is generally measured by standards such as income inequality, poverty rate, real (i.e. inflation adjusted) income per person.

Government-owned / state-owned / publicly owned

public

Companies that may or may not be expected to operate in a broadly commercial manner and may or may not have monopolies in their areas of activity

Subsidy

subvention

A type of financial government assistance, such as a grant, tax break, or trade barrier, in order to encourage the production or purchase of a good.

The term may also be used to refer to government actions which limit competition or raise the prices at which producers could sell their products, for example, by means of tariff protection. Although economics generally holds that they may distort the market and produce inefficiencies, there are a number of recognized cases where they may be the most efficient solution.

to subsidize, grant subsidies ≠ to cut back on / reduce / slash subsidies

subventionner, accorder des subventions ≠ réduire les subventions

surplus

surplus, excédent

Critics of central planning say that a market economy prevents long-term _______________ because the operation of supply and demand causes the price to sink when supply beings exceeding demand, indicating to producers to stop production or face losses.

Sustainable

Durable

The green economy is considered being able to both ensure ______________________ development and economic growth and prevent environmental degradation.

swapping/ to swap

échange, troc / échanger

The increasingly prevalent informal bartering system in which participants in Internet communities trade items (goods or services) of comparable value on a trust basis.

Tariff

tarif douanier

traditional economy

An economy based on custom and tradition.

This economic system in which resources are allocated by inheritance , has a strong social network and is based on indigenous technology and methods. It also provides less of a demand on the natural resources because goods are usually only produced if they will be consumed, hence, there is a lack of over consumption and surplus .

Wants / needs

besoins

wealth

richesse(s)

All goods and resources having value in terms of exchange or use

welfare

1) bien-être

2) aide, protection social

_________________neconomics determines allocative efficiency and the income distribution within an economy.