Lecture 13: Economics Overview and Key Concepts

These flashcards encompass critical vocabulary and key concepts from Lecture 13 focused on economics, capitalism, socialism, and historical developments.

Great Enrichment

A term in economics referring to the significant increase in living standards over the last 200 years, particularly in Western Europe and America.

Market Price System

An economic system where prices emerge based on the interaction of supply and demand, rather than being set by the government.

Capitalism

An economic system characterized by private ownership of property, individual rights, and minimal governmental control.

Socialism

An economic system in which the government owns and controls the means of production, often redistributing wealth.

Division of Labor

The separation of tasks in an economic system so that each worker can specialize in a particular task, increasing efficiency.

Malthusian Spectre

The theory that population growth will outpace agricultural production, leading to widespread famine and poverty.

Efficient Markets Theory

The hypothesis that stock prices reflect all available information and thus it is impossible to consistently achieve higher than average returns.

Private Property Rights

The legal rights of individuals to own and manage their possessions, which supports trade and economic cooperation.

Interglacial Warming

Periods of warmer climate between ice ages, allowing for agricultural development and the growth of civilizations.

Neanderthals and Homo Sapiens

Two species of early humans; they coexisted for a limited time, with Homo Sapiens eventually dominating due to superior social cooperation and economic strategies.