Studied by 3 PeopleTags & Description
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)
