Economic Systems and Command Economies

A set of vocabulary flashcards defining key economic systems, theories, and historical context based on the lecture notes.

Market economy

An economic system based on individual choice rather than government directives, where consumers and producers drive economic decisions.

Invisible hand

A concept noted by Adam Smith in The Wealth of Nations describing how individuals acting in their own self-interest unintentionally promote the interests of others.

Traditional economy

An economic system focused on survival, where economic decisions and methods of production are determined by custom, ritual, and tradition.

Subsistence farming

A form of agriculture in which farmers grow just enough food to feed their own families.

Kavango people

A population in Namibia in Southern Africa who have historically lived as subsistence farmers and are experiencing societal pressure to change due to modern telecommunications.

Commercial farming

An agricultural system where crops are grown not only for personal consumption, but also for sale in markets.

Centrally planned economy

An economic system in which the central government or society's leaders make all decisions regarding what, how, and for whom products are made.

Karl Marx

A nineteenth-century German philosopher, historian, and economist who analyzed class struggle and whose work influenced the development of command economies, socialism, and communism.

Socialism

An economic system developed from the ideas of Karl Marx in which the government owns some or all of the factors of production.

Communism

An extreme form of socialism characterized by no private ownership of property and little or no political freedom.

Authoritarian system

A governance or organizational system that requires absolute obedience to authority.

Democratic socialism

An economic system established through the democratic political process, where the government owns basic industries while other industries remain privately owned.