Economic Dimensions Flashcards
Economy
The system according to which the money, production, industry, and trade of a country are organized and managed
Command Economy
A central government authority dictates the levels of production and prices that may be charged for goods and services.
Free Market Economy
One without government regulation. Buyers and sellers arrive at prices based on supply and demand.
Mixed economy
Combines aspects of capitalism and socialism. Protects private property and allows economic freedom in the use of capital, but also allows governments to interfere in economic activities to achieve social aims.
Socialism
means of production, distribution, and exchange owned or regulated by the community as a whole.
John Maynard Keynes
Early 20th century British economist, founder of Keynesian economics and father of modern macroeconomics.
Keynesian economics
Government intervention can stabilize the economy. In times of recession- increased government spending and lower tax rates to stimulate demand. Demand side solutions.
Collusion
cooperation between companies that seek to gain extensive competitive advantage in the marketplace.
Laissez-faire capitalism
An economic philosophy of free market capitalism that opposes government intervention.
Income disparity
Significant disparity in the distribution of income between individuals, groups, populations, or social classes
Neo-conservatism
Late 20th century embrace of laissez faire capitalism. Emphasizing fiscal restraint and the belief that the government should privatize economic interests, restrict social spending, and deregulate the economy. Supply side policies.
Stagflation
High inflation and economic stagnation. Inflation rate is high or increasing, economic growth slows, and unemployment remains steadily high. A dilemma for economic policy since actions taken to lower inflation may exacerbate unemployment.
