AP Comp Gov 3

Political Economy

The study of how politics, government policies, and economic systems influence each other

Economic Freedom

The ability of individuals and businesses to make economic decisions with limited government intervention.

Economic Equality

The goal of reducing differences in income and wealth among people in society.

Liberalism

An ideology that emphasizes economic freedom, private property, free markets, and limited government intervention.

Social Democracy

An ideology that combines a market economy with government policies that reduce economic inequality through redistribution and social welfare.

Communism

An ideology that seeks to eliminate social classes and private ownership through collective control of property and production.

Mercantilism

An economic system in which the government controls economic activities to increase national wealth and state power.

State Intervention

Government actions that influence or control economic activities through policies such as regulations, taxes, subsidies, or price controls.

Private Property

Goods, land, or other resources that are owned and controlled by individuals or private businesses.

Public Goods

Goods and services provided by the government for public use, often free or at a subsidized price.

Social Expenditures

Government spending on social benefits and services intended to support people and reduce economic inequality.

Progressive Taxation

A tax system in which people with higher incomes pay a higher percentage of their income in taxes.

Gross Domestic Product (GDP)

The total market value of all final goods and services produced within a country during a given period.

GDP per Capita

A country's total GDP divided by its population, used to estimate average economic output per person.

Gini Coefficient

A measure of income inequality ranging from 0 for perfect equality to 1 for maximum inequality.