Chapter 2 VocB Flashcards
Economic system in which the central government makes all decisions on the production and consumption of good and services
Centrally planned economy
Requiring strict obedience to an authority such as a dictator
Authoritarian
Large farm leased from the state to groups of peasant farmers
Collective
Economic system in which the central makes all decisions on the production and consumption of goods and services
Command economy
A political system characterized by a central planned economy with all economic and political power resting in the hands of the central government
Communism
The power of consumers to decide what gets produced
Consumer sovereignty
A range with. I clear divisions
Continuum
The method used by a society to produce and distribute goods and services
Economic system
Market in which farms purchase the factors of production from households
Factor market
The income people recurve for supplying factor of production
Factor payments
An organization that uses resources to produce a product which it then sells
Firm
An economic system characterized by private or. Or pirate ownership of capital goods; investments that are determined by private decision rather than by state control; and determine in a free market
Free enterprise
Industry that requires a large capital investments and that produces items used in other industries
Heavy industries
A person or a group of people living in the same residence
Household
An expectation that encourages people to behave a certain way
Incentive
Term economists use to describe the self regulating nature of the marketplace
Invisible hand
The doctrine that states that government generally should not intervene in the market place
Laissez faire
An arrangement that allows buyers and sellers to exchange things
Market
Economic system in which decisions on production. And consumption of goods and services are based on voluntary exchange in markets
Market economy
Economic system that combines the free market with limited government involvement
Mixed economy
The love of one’s country; the passion that inspires a person to serve their country
Patriotism
Property owned by individuals or companies, not be government or the people as a whole
Private property
To sell to individuals state run firms, which are then allowed to compete with one another in the market place
Privatize
The market in which households purchase that goods and services that firms produce
Product market
The financial gain made in a transaction
Profit
Government programs that protect people experiencing unfavorable economic conditions
Safety net
One’s own personal gain
Self-interest
A social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society
Socialism
The concentration of the productive efforts of individuals and firms on a limited number of activities
Specialization
Level of economic prosperity
Standard of livin
Economic system that relies in habit, custom, or ritual to decide questions of production and consumption of goods and services
Traditional economy
Period of change in which an economy moves away from a centrally planned economy toward a market based system
Transition
