Ecomic systems and industrailization

Supply and demand

The economic model that explains how prices are determined in a market economy based on the relationship between the availability of goods (supply) and the desire for those goods (demand).

Scarcity

refers to the limited availability of resources in comparison to the limitless wants and needs of consumers. It drives supply and demand in an economy.

Traditional economy

A type of economic system that relies on customs, history, and time-honored beliefs to make decisions/govern, often characterized by subsistence farming and bartering. Resources are allocated based on inheritance and economic activities are characterized towards, family, tribe, or eithic group. Choices determined by environment and little use of tech.

Command Economy?

The government or other central authority makes all economic decisions. Individuals have almost no influence over economic functions. Resources are owned by the government. No competition, purpose of buisness is to provide goods and services, not make profit. Factories are concerned with qoutas(amt/rate+time). Consumers have very few choices in marketplace, govt sets prices of goods and services.

Market Economy

A type of economic system where decisions regarding investment, production, and distribution are driven by the supply and demand of goods and services in a free market. Prices are determined by competition and consumer preferences. Resources are owned by individuals. Profit is the motive for increasing work. Also known as capitalist economy.

Mixed Economy

A combination of a market and command economy. The government and individuals share in the economic decision making process. Protects private property, allows economic freedom, and allows the forces of supply and demand to drive decisions. Governments regulate to prevent monopolies. Most modern economies are mixed. Government guides and regulates production of good s and services. Government will protect workers (producerrs and consumers) they have the right to go on strike.

Individualism

The idea that a person should act on their own uniqueness and fulfill their personal desires

Collectivism

Practice or principle of giving a group priority over each individual in it

Capitalism

an economic and political system in which a country's trade and industry are controlled by private owners for profit.

Socialism

the goal is to reduce and eliminate inequality by distributing wealth and resources more evenly accross society. 🧠 Think “shared ownership = shared benefit” — socialism emphasizes equality, public welfare, and reducing class differences.

Communism

a political and economic system where the government owns and controls most resources, like land, factories, and industries, and distributes wealth and goods equally to all citizens. The goal is to create a classless society without private ownership, where everyone benefits from the work of others. 

What does a union do and how can it go on strike? Define collective bargaining in your answer

an organization of workers that collectively negotiates with employers to improve their working conditions, wages, and benefits. a coordinated work stoppage initiated by union members to exert pressure on an employer during collective bargaining. It's a form of protest where employees refuse to work, aiming to disrupt the employer's operations and force them to negotiate or accept the union's demands. Collective bargaining is a process where a union, representing workers, negotiates with an employer to establish a written contract outlining terms and conditions of employment

Definition of monopoly

a market structure where a single seller or producer controls the entire supply of a product or service with no close substitutes

Vertical integ.?

a market structure where a single seller or producer controls the entire supply of a product or service with no close substitutes. You can do this either by moving backwards to raw material ie Ikea buys forests, or moving towards consumer ie Netflix producing its own movies. Method of outsourcing companies.

Horizontal integ.

involves a company expanding by acquiring or merging with other businesses at the same stage of production within the same industry. When you ctrl 2+ stages of companies production, ie walmart doesn’t produce all of its goods, but funnels it to customer, everything is in 1 place so they outsource other buisnesses. Using this leverage companies can censor and ctrl manufacturers.

What does it mean to say you are ‘left’ on ecological spectrum

Left (Eco-Socialist, Green Left):

• Nature > profit

• Government should regulate industries to protect the environment

• Supports renewable energy, public transit, green jobs, and degrowth

• Often opposes corporate power and fossil fuel dependence

What does it mean to say you are ‘right’ on ecological spectrum

• Free markets: Less government interference in the economy.

• Private ownership: Businesses and property are owned by individuals, not the state.

• Low taxes: To encourage investment and entrepreneurship.

• Deregulation: Fewer rules on businesses to promote growth.

• Individual responsibility: People should take care of themselves, not rely on government help.

📌 Key idea: “The market knows best.” Let businesses compete, and wealth will “trickle down” to benefit everyone.

Deficit

A deficit happens when a government (or organization) spends more money than it earns in a specific period—usually a year.

• Example: If a government earns $3 trillion in taxes but spends $4 trillion, it has a $1 trillion deficit for that year.

• Deficit = yearly shortfall

Debit

Debt is the total amount of money a government (or organization) owes over time due to borrowing—often to cover past deficits.

• Example: If a government runs several annual deficits and borrows money to cover them, all those borrowed amounts added together form the national debt.

Debt = total owed from current and past deficits

Public vs private property ( Explain what they are and compare them)

Public property is owned and managed by the government on behalf of the public. It is funded by taxpayers and meant for the use and benefit of everyone. Examples include parks, roads, libraries, and public transit systems. In contrast, private property is owned by individuals, families, or businesses. The owner has full legal control over how it is used, and others must get permission to access it. It is used for personal purposes or to generate profit. Examples include homes, cars, farms, businesses, and personal belongings. The key differences lie in ownership, access, control, funding, and purpose—public property serves the community, while private property serves individual interests.

Tarrifs

Tariffs are taxes or duties placed on imported goods by a government. They are used to make foreign products more expensive, encouraging consumers to buy domestically made goods.

Key Purposes:

• Protect domestic industries from foreign competition

• Raise government revenue

• Promote local job growth

levies

Levies are official charges or taxes imposed by a government or authority to collect money for specific purposes.

Key Points:

• A levy can be placed on income, goods, services, or property.

• It is a broad term that includes tariffs, taxes, and duties.

• Levies are used to fund government programs, infrastructure, or regulations.

subsidies

are financial aids or benefits given by the government to individuals, businesses, or sectors to reduce costs and encourage specific activities.

Key Characteristics:

• Lower production or consumer costs

• Support key industries (e.g., agriculture, energy)

• Promote public goals like clean energy or education

• Can be direct (cash) or indirect (tax breaks)

protectionism

Protectionism is an economic policy where a government restricts imports to protect domestic industries from foreign competition.

Key Features:

• Tariffs: Taxes on imported goods

• Quotas: Limits on the amount of imports

• Subsidies: Support for local industries

• Import bans or regulations: To favor local products

Purpose:

• Protect local jobs and businesses

• Reduce reliance on foreign goods

• Support emerging or sensitive industries

Downsides:

• Higher prices for consumers

• Limited product variety

• Risk of trade wars or retaliation

In short, protectionism puts national industries first, often at the cost of free trade.

Brinkmanship

Brinkmanship is the practice of pushing a dangerous situation to the edge of conflict to force the opponent to back down.

Key Features:

• Used in politics and diplomacy, especially during conflicts

• Relies on threats and extreme pressure

• Involves high risk, often with no clear outcome

• Goal is to gain an advantage by showing you’re willing to go “all the way”

Examples:

• The Cold War nuclear standoff between the U.S. and the Soviet Union

• Trade negotiations where one country threatens major tariffs unless demands are met

Brinkmanship is a risky strategy that can lead to either a successful compromise—or full-scale conflict if no one backs down.

Collateral Danage

refers to unintended harm, injury, or destruction caused during a military operation or conflict.

Key Features:

• Unintended: Not the main target of the attack

• Often affects civilians, buildings, or infrastructure

• Seen as a side effect of targeting enemy forces

• Can also be used in a non-military sense (e.g., job losses from economic policy)