Chapter 14-Economy & Politics Flashcards
Economy
Social institution dedicated to production, distribution, and consumption of goods and services, depend on it to coordinate and provide for our wants and needs, reflects and reinforces core values, not static
Types of economic systems
Capitalism
Laissez-faire
Capitalism
Economic system in which owners of private property compete in the marketplace in pursuit of profits
Laissez-faire
Allow everyone to compete freely in capitalist marketplace without governmental interaction
Monopolies
Some aspect of the market become controlled by a single business
Socialism
Production and distribution in a society are collectively owned
Mixed economies
Combines elements of both capitalism and socialism
Primary sector
Involves extraction of natural resources from environment
Secondary sector
Activities that transform raw/intermediate materials into finished products
Tertiary sector
Activities that provide services rather than goods
Deindustrialization
Systematic and widespread reduction of investments in domestic manufacturing and material production
Downsizing
Organizational restricting to reduce size of companies workforce
Offshoring
Outsourcing of work to foreign contractors
Politics
Completion between individuals/groups over the allocation of valued resources
Polity
Social institution founded on a recognized set of producers for implementing and achieving society’s goals