Economic Sectors

Capitalism

A system in which factor of production are privately owned

Communism

An economic and political system in which the government owns and control the means of production, and resources are distributed equally among citizens with the goal of eliminating social classes.

Command Economy

A system of resource management in which decisions about production and distribution of goods and services are made by a central authority.

Market economy

A system of resource management in which the government supports and regulates enterprise through decisions that affect the marketplace.

Free enterprise

A system in which private individuals or groups have the right to own property or businesses and make a profit with limited government interference.

Mixed economy

A system of resource management in which the government supports and regulates enterprise through decisions that affect the marketplace.

HDI

A measurement used to compare countries based on the quality of their people, including health, education, and standard of living.

Socialism

An economic system in which the government or the community owns or controls key industries and resources, with the goal of promoting equality and providing basic needs for everyone.

Cottage Industry

A type of production in which goods are made by hand or with simple tools in people’s homes or small workshops rather than in large factories.

Goods

Physical items that are produced, bought, and sold to satisfy people’s wants and needs.

Services

Activities or tasks performed by people or businesses to meet the needs or wants of others, rather than producing physical goods

Traditional Economy

A system in which traditional and custom control al economic activity; exists in only a few parts of the world today.

Traditional Economy

What type of economy relies on customs, habits, and rituals?

traditional economy

Rural villages run on this economy

services

Intangible (cannot be seen/touched)

Goods

Can be seen/touched

Cottage Industry

Small-scale production

Socialism

Wealth distributed through taxes and social programs

Socialism

Government controls/owns major industries like healthcare, energy, or transportation

Human Development Industry (HDI)

created by the United Nations

Human Development Industry (HDI)

Uses 3 main indicators: life expectancy, education, years of schooling Gross National Income

Higher score in Human Development Index (HDI) means

Higher level of development

Mixed economy

The type of economy the US, UK, and Canada have

Mixed economy

government regulates certain industries

Free enterprise

limited government regulation

Market economy

consumer influence what is produced through their choices

Free Enterprise

freedom to start and operate a business

command economy

prices and wages set by the government

communism

North Korea, Soviet Union economy

capitalism

private ownership of property and business