Chp. 2 Flashcards
What is a Traditional Economy?
An economic system in which the allocation of scarce resources and other economic activity is the result of ritual, habit, or custom.
What are Economic Systems?
An organized way a society provides for the wants and needs of its people.
What is a Command Economy?
An economic system characterized by a central authority that makes the most of the major economic decisions.
What is Socialism?
An economic system in which government owns some factors of production and has a role in determining what and how goods are produced.
What is a Market Economy?
An 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.
What is Capitalism?
An economic system in which private citizens own and use the factors of production in order to generate profits.
What are Mixed Economies?
An economic system that has some combination of traditional, command, and market economies.
What was the Great Depression?
The worst period of economic decline in U.S. history, lasting from approximately 1929 to 1939.
What is Communism?
An economic and political system in which factors of production are collectively owned and directed by the state; a theoretically classless society in which everyone works for the common good.
What is GDP Per Capita?
Gross domestic product on a per person basis; can be expressed in current or constant dollars.
What is Privatization?
The conversion of state-owned factories and other property to private ownership.
What are Vouchers?
Certificates that could be used to purchase government-owned property during privatization.
What is Collectivization?
Forced common ownership of factors of production; used in the former Soviet Union in agriculture and manufacturing.
What was the Great Leap Forward?
China’s second Five-Year Plan, begun in 1958, which forced collectivization of agriculture and rapid industrialization.
What is Solidarity?
An independent Polish labor union founded in 1980 by Lech Walesa.
What is Nationalization?
The shift of an economy, or part of an economy, from private ownership to government ownership.
What is a Black Market?
A market in which goods and services are sold illegally.
What is Population Density?
The number of people per square mile of land area.
