Economic systems vocab chapter 1 lesson 2

A collection of vocabulary flashcards covering the characteristics of various economic systems (Traditional, Command, Market, etc.), historical Soviet and Chinese economic planning, and specific regional economic terms.

Five-Year Plan

Comprehensive, centralized economic plan used by the Soviet Union and China to coordinate development of agriculture and industry.

Gosplan

Central planning authority in the former Soviet Union that devised and directed Five-Year Plan.

Collectivization

Forced common ownership of factors of production, used in the former Soviet Union in agriculture and manufacturing.

Perestroika

Fundamental restructuring of the Soviet economy, policy introduced by Gorbachev.

Great Leap Forward

China's second Five-Year Plan, begun in $1958$, which forced collectivization of agriculture and rapid industrialization.

Keiretsu

Independently owned group of Japanese firms joined and governed by an external board of directors in order to regulate competition.

Population Density

Number of people per $\text{square mile}$ of land area.

Capital-Intensive

Production process requiring large amounts of capital in relation to labor.

Traditional Economy

Economic system in which allocation of scarce resources and other economic activity, is the result of ritual, habit, or custom.

Command Economy

Economic system characterized by a central authority that makes most of the major economic decisions.

Socialism

Economic system in which government owns some factors of production and has a role in determining what and how goods are produced.

Market Economy

Economic system in which supply, demand and the price system help people allocate resources and make the what, how and for whom to produce decisions.

Capitalism

Economic system in which private citizens own and use the factors of production in order to generate profits.

Mixed Economy

Economic system that has some combination of traditional, command and market economies.

Communism

Economic and political system in which factors of production are collectively owned and directed by the state.

Privatization

Conversion of state-owned factories and other property to private ownership.

Nationalization

Shift of an economy, or part of an economy, from private ownership to government ownership.

Black Market

Market in which goods and services are sold illeagally.