Economic Activity Vocabulary

Vocabulary flashcards covering economic systems, sectors of the economy, and key economic concepts from the unit schedule.

Capitalism

An economic system characterized by private ownership of the means of production, free market competition, and profit-driven enterprise.

Depression

A sustained, severe downturn in economic activity, marked by high unemployment, falling GDP, and significant drops in trade and investment.

Feudalism

A historical social and economic system based on land ownership, where landholders grant land to vassals in exchange for military service and labor.

Mixed economies

Economic systems that incorporate elements of both private enterprise (capitalism) and state ownership or economic regulation.

Planned economy/communism

An economic system in which the central government owns the means of production and controls economic planning and resource allocation.

Primary sector

The economic sector focused on the extraction and harvesting of natural resources, including agriculture, mining, forestry, and fishing.

Private sector

The segment of the economy owned, operated, and managed by private individuals and private businesses for profit.

Public sector

The portion of the economy controlled, operated, and funded by government agencies to provide goods and services to the public.

Quaternary sector

The knowledge-based economic sector handling information processing, research and development, education, and financial services.

Quinary sector

The economic sector comprising high-level decision-making roles, including government officials, corporate executives, and specialized research leaders.

Recession

A period of economic decline characterized by reduced trade, industrial activity, and GDP growth over two consecutive quarters.

Secondary sector

The economic sector responsible for processing raw materials and manufacturing finished products or goods.

Socialism

An economic system where the means of production and distribution are owned or regulated collectively by the government or society.

Subsidies

Government financial support provided to businesses, industries, or individuals to promote economic activity or lower prices.

Tariffs

Taxes or duties imposed by a government on imported or exported goods.

Tertiary sector

The economic sector focused on providing commercial, professional, and personal services to consumers and businesses.

Economies of scale

The cost advantages gained by businesses when production becomes efficient and costs per unit decrease as output increases.