Forms of Economic Systems and Forms of Governments

Distribution of goods

________ based on need- everyone shares in wealth /ownership.

Globalization

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

Republic

________: People vote for their representatives to make laws.

Dictatorship

________: Single authority or ruler who usually takes power by force.

Absolute Monarchy

________: Someone who is born into power and holds all the power.

Marx

________ disagreed with capitalism because he felt it was unequal.

Socialism

________: an economic system in which the means of production are controlled by the state or the people- not individuals.

Market economy

________: Operate in response to the laws of supply and demand and to market forces such as the scarcity of goods and resources.

Command economy

________: Operate at the will of the government.

Capitalism

________: an economic system based on private ownership of capital + factors of production.

Traditional Economy

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

Marxism

________ only ever was a theory though it led to the creation of socialism.

Economics

The study of how people satisfy their wants and needs

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 and to market forces such as the scarcity of goods and resources

Globalization

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

Economic System

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

Capitalism

an economic system based on private ownership of capital + factors of production

Examples

Sweden, France, Norway, Canada, Italy

Distribution of goods based on need

everyone shares in wealth/ownership

End of classes

revolutionary concept

Examples

Chine, Vietnam, North Korea, Cuba

Democracy

Rule by the people

Constitutional Monarchy

Monarchs have limited power and there is a democracy in place for real power

Republic

People vote for their representatives to make laws

Dictatorship

Single authority or ruler who usually takes power by force

Absolute Monarchy

Someone who is born into power and holds all the power

Totalitarian Dictator

Dictator with control over all aspects of the country and peoples lives

Benevolent Dictator

Rules for the best of the people

Economics

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

Traditional Economy

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

Market Economy

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

Command Economy

Operate at the will of the government. The government controls industry and agriculture and decides what goods will be produced, how those goods will be made, and the prices that consumers will pay for them.

Globalization

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

Economic System

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

Capitalism

An economic system based on private ownership of capital + factors of production.

Free Market

Production and distribution of goods are determined by market. What people are willing to pay and how much the company can make.

Democracy

Rule by the people. People have the power to make laws.

Constitutional Monarchy

Monarchs have limited power and there is a democracy in place for real power.

Republic

People vote for their representatives to make laws

Dictatorship

Single authority or ruler who usually takes power by force

Absolute Monarchy

Someone who is born into power and holds all the power.

Totalitarian Dictator

Dictator with control over all aspects of the country and people’s lives.

Benevolent Dictator

Rules for the best of the people.

Socialism

An economic system in which the means of production are controlled by the state or the people - not individuals.

Communism

A form of socialism that abolishes private ownership

Bourgeoisie

French for “town dweller.” Middle class. In Communist terms, they are the people who own the means of production

Gross Domestic Product

The sum of all goods and services produced in a country within one year. Used to express the size of an economy.

Laissez-faire

French for “let do.” Used to describe a “hands-off” approach to the economy. Little/no government interference.

Means of production

The facilities and resources for producing goods.

Proletariat

Workers, working-class people

Subsidy/Subsidize

Government provides financial support (to business or public need)

Capital

Wealth (money, gold & silver, stocks, bonds)