Chapter 2 Vocabulary Flashcards
economic system in which the allocation of scarce resources, and other
economic activity, is the result of ritual, habit, or custom.
Traditional economy
organized way a society provides for the wants and needs of its people.
Economic Systems
economic system characterized by a central authority that makes the most of
the major economic decisions.
Command economy
economic system in which government owns some factors of production and has a role in
determining what and how goods are produced.
Socialism
Economy: economic system in which supply, demand, and the price system help people
allocate resources and make the WHAt, HOW, and FOR WHOM to produce decisions.
Market Economy
economic system in which private citizens own and use the factors of production in
order to generate profits.
Capitalism
economic system that has some combination of traditional, command, and
market economies.
Mixed Economies
gross domestic product on a per person basis; can be expressed in current or
constant dollars.
GDP per capita
conversion of state-owned factories and other property to private ownership.
Privitization
certificates that could be used to purchase government-owned property during
privatization.
Vouchers
forced common ownership of factors of production; used in the former Soviet
Union in agriculture and manufacturing.
Collectivization
China’s second Five-Year Plan, begun in 1958, which forced collectivization of
agriculture and rapid industrialization.
Great Leap Forward
independent Polish labor union founded in 1980 by Lech Walesa.
Solidarity
shift of an economy, or party of an economy, from private ownership to
government ownership.
Nationalization
market in which goods and services are sold illegally.
Black Market
