Social Studies Economics Flash Cards

Economics

The scientific study of the means of producing and distributing goods and services so that they may be consumed by others.

Socialism

An economic system in which the means of production are held in common amongst members. There are many different types of socialism, and some types of socialism (communism, for example) are also political theories.

Production

The creation of a good or service that has value to another individual.

Inflation

A general increase in prices and fall in the purchasing value of money.

Distribution

The method of getting the goods to the individuals who will use them.

Consumption

The actual use of the goods that are produced. Often times, it produces some form of waste.

Goods

The products that are desired by individuals.

Services

Processes that are desired by individuals.

Consumer

The individual who will use the goods or services.

Producer

The individual who will create the goods or services.

Household

The independent unit of customers.

Government

A formal body which is in charge of creating and enforcing laws within a state.

Developed

Those which meet certain criteria of economic measurement including gross domestic product (GDP) per capita, industrialization, etc.

Underdeveloped

One which has not yet organized, nor begun to organize in terms of job growth, industrialization, health care, etc.

Developing Economy

One in which there may be hunger issues (but not what you would find in an underdeveloped economy), and where you may find a wide variety of progress being made on the development spectrum.

Capitalism

The economic system many are already familiar with. The purpose of this is to ensure that production occurs that maximizes profit and is characterized by competition against other producers within the system. The means of production are privately held.

Socialism

An economic system in which the means of production are held in common amongst members. There are many different types of this, and some types of this (communism, for example) are also political theories.

Market Economy

An economy in which there is a strong division of labor (someone owns the restaurant, someone manages the restaurant, yet other people carry out the tasks of cooking and waiting tables); supply and demand is what allows individuals to set prices.

Supply and Demand

Associated with market economies and setting price points, first thing is the number of goods or services produced and second thing is the number of consumers wanting the goods or services. The higher the second thing and the lower the first thing, the more expensive an item will be whereas the higher the first thing and the lower the second thing, the lower the price.

Mixed Economy

One which combines elements of both capitalist societies and socialist societies. These feature some elements of the ideals of capitalism and private ownership of the means of production along with elements of the ideals of socialism with the public (governmental) ownership of the means of production.

Planned Economy

An economy in which the state directs the economy. This means that the state will determine how goods will be produced and to whom the goods will be distributed.

Gift Economy

One in which goods and services are freely given to others without any expectations for returns of the favor.

Barter Economy

One in which goods and services are traded for other goods and services without an intermediary form of payment (like money).