Ch 8 - The Economy

Private citizens

________ own the means of production however they must abide by laws which protect the population and ensure that the government can collect taxes.

Fiat money

________ caused coins made of precious metals to disappear from circulation.

fast communications

Interconnected global village- that is, worlds nations are linked by ________, transportation, and trade.

John Rockefeller

________: achieved the capitalist's dream, a monopoly, the control of an entire industry by a single company.

GDP

________: gross domestic product, the total goods and services that a country produces.

E cash

________: money stored on a companys computer that can be transferred over the internet to anyone who has an account with that company.

Debit cards

________: a device that electronically withdraws the cost of an item from the card holders bank account.

capitalist economy

In a(n) ________, the market forces supply and demand which determines what will be produced and price changes.

socialist economy

In a(n) ________, the government owns the means of production (not just factories- but land, railroads, oil wells, and gold mines.

Central planning

________: central committees plan production and set prices with no competition.

Gold standard

________: Gold was replaced by paper currency Fiat money: is a currency issues by a government that is not backed by stored value → with no stored value, dollars can be printed in any amount a government desires.

Socialism

________: an economic system built around the public ownership of the means of production, central planning, and the distribution of goods without a profit motive.

Biotech Societies

________: the merger of biology and economics.

Pure capitalism laissez faire capitalism hands off

________, "means that government doesn't interfere in the market.

Capitalism

________: An economic system built around the private ownership of the means of production, the pursuit of profit, and market competition.

Biotech Societies

the merger of biology and economics

Mediums of Exchange

The Earliest medium of exchange is recorded with hunting and gathering societies, pastoral, and horticultural societies as they produced little surplus, people bartered and directly exchanged one item for another

GDP

gross domestic product, the total goods and services that a country produces

Credit cards

a device that allows someone who has approved a specific amount of credit to purchase goods without an immediate exchange of money

Debit cards

a device that electronically withdraws the cost of an item from the card holders bank account

E-cash

money stored on a companys computer that can be transferred over the internet to anyone who has an account with that company

Capitalism

An economic system built around the private ownership of the means of production, the pursuit of profit, and market competition

John Rockefeller

achieved the capitalist's dream, a monopoly, the control of an entire industry by a single company

Socialism

an economic system built around the public ownership of the means of production, central planning, and the distribution of goods without a profit motive

Central planning

central committees plan production and set prices with no competition