Econ Chap 2 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
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
worst period of economic decline in U.S. history, lasting from approximately 1929 to 1939.
Great Depression
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.
Communism
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.
Privatization
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
