Significant Economic Systems to Know for AP World History: Modern

Feudalism

A system where hierarchy, wealth, power and protection is established based on the ownership of land.

Land-Based Economy

land was owned by lords and they granted fiefs to vassals in exchange for military service.

Manorialism

The economic system tied to feudalism, centered on self-sufficient agricultural estates or manors as the basic unit of production.

Self-Sufficiency

Each manor produced everything it needed such as food, tools, and clothing.

Mercantilism

An economic policy focused at increasing the national wealth through strict government control of trade.

Colonialism

Colonies supplied raw materials and served as exclusive markets for the country.

Capitalism

An economic system where private individuals or corporations own the means of production and operate for profit.

Market Economy

Prices and production are determined by supply and demand.

Socialism

A system advocating public or collective ownership of the means of production to reduce economic inequality.

Taxation

Taxes are use for extensive social welfare programs and public services.

Communism

A system advocating for a classless society where all property and resources are communally owned.

Abolition of Private Property

Eliminate private ownership and focus on collective ownership.

Mixed Economies

Combines elements of capitalism and socialism, blending private enterprise with government intervention.

Private and Public Sectors

Coexist to balance economic freedom, inequalities, and social welfare

Command Economies

An economy where production and distribution of goods are entirely controlled by the government.

Centralized Control

The state sets production targets, prices, and resource allocation that often leads to inefficiencies and shortages.

Free Market Economies

An economic system relying on market forces such as competition of privately owned businesses to determine production and prices.

Economic Freedom

Businesses operate with minimal government intervention.

Globalization

The increasing interconnection and interdependence of economies, cultures, and societies worldwide through trade, investment, and culture.

Trade Integration

Growth of international trade and multinational corporations.

Significant Economic systems

Feudalism

Manorialism

Mercantilism

Capitalism

Socialism

Communism

Mixed Economies

Command Economies

Free Market Economies

Globalization