Economic Institutions and Economic Systems

These flashcards cover essential vocabulary related to economic institutions and systems discussed in the lecture.

Economic Institutions

They provide apparatuses for the production and distribution of goods and services in society.

Collective Decision

A method of decision-making that is important due to limited resources in a society.

Capitalism

A social and economic system where production, distribution, and exchange are controlled by a small minority of private individuals and corporations.

Proletariat

The working class who must sell their ability to work to earn salaries and do not have power over resources.

Socialism

An economic system where all resources and means of production are controlled and owned by the state, promoting common ownership.

Welfare Capitalism

A system characterized by a free market economy with extensive social welfare programs for the proletariat.

State Capitalism

A system where resources and means of production are privately controlled but monitored and regulated by the government.

Basic Economic Problems

Questions regarding what, how much, how, and for whom to produce in society.

Mixed Economy

An economic system that combines aspects of capitalism and socialism.

Key Motive of Production in Socialism

To meet the basic human needs of the people rather than for individual profit.