Economic & Social Terms

Poverty: A condition in which individuals lack the financial means to afford basic necessities like food, shelter, and healthcare (e.g., a family that cannot cover rent or medical bills). Poverty affects a person’s quality of life and access to opportunities.

Socialist Command Economy: An economic system where the government centrally controls resources, production, and distribution, aiming for equal distribution of wealth (e.g., in Cuba, the government decides production levels for goods and services). This type of economy limits private enterprise and emphasizes state ownership.

Inflationary Impact: The effect of rising prices on the economy, reducing the purchasing power of money over time (e.g., if food prices increase, households may need to cut back on other expenses). High inflation can lead to decreased affordability for essential goods.

Opportunity Cost: The value of the next best alternative given up when a choice is made (e.g., the opportunity cost of choosing to go to college may be the income you could have earned working). It emphasizes the trade-offs involved in every decision.

Unconscious Bias: Automatic, often unrecognized, beliefs or stereotypes that affect behavior and decisions (e.g., assuming someone’s skills based on their gender). These biases can influence judgment and behavior without conscious awareness.

Racism: Discrimination or prejudice based on race, often leading to unequal treatment and opportunities (e.g., racial profiling in hiring or law enforcement). Racism can be systemic, affecting laws, institutions, and cultural attitudes.

Bias: A preference or inclination that can unfairly favor one group, idea, or person over another (e.g., favoring one job candidate due to personal beliefs rather than qualifications). Bias can affect decisions in ways that may not be equitable.

Discrimination: Unjust treatment of individuals based on characteristics such as race, gender, or age (e.g., excluding qualified candidates from a job because of their ethnicity). Discrimination is often legally prohibited and contributes to inequality.

Prejudice: Preconceived negative judgments or attitudes toward individuals or groups, typically without valid reasons or prior experience (e.g., having a low opinion of a group based on stereotypes). Prejudice can lead to unfair treatment and reinforce harmful beliefs.