Economic Growth Flashcards
Define Nomadic
When people move from place to place for food, water and pasture
Define barter
A method of trading by which a commodity is exchanged for another commodity
Define Guild
An association of people with similar interest
Define Mercantile law
The law that governs commercial transactions
Define Communism
Political and economic system of social organisation based on shared ownership of property and factors of production
Define Capitalism
Economic and social system in which private individuals and businesses produce and exchange goods and services by means of prices and markets
Define Central planned economic system
The system where the government plans what will be produced with the available resources and how goods and services will be distributed
Define mixed economic system
The system with features of both capitalism and socialism
Define mechanisation
The use of machines to do the work of animals or people
Define public finance
The branch of economics that deals with government revenue and expenditure and administration of them
Define Urbanisation
The movement of people from rural areas to urban cities to look for work or better services
Define Poll taxes
Taxes levied per head of adult population
What are the 7 stages of early economic development and emergence of trade
Self Sufficiency and dependence on agriculture
Barter, trade and emergence of money
Commodity money
Language, skills and learning
Apprenticeship in the workplace
Wealth, power and accumulation
Surpluses used by landlords to build wealth and support power
What are the 5 stages of evolution of markets
Surplus production, trade and transport development
Growth of towns and cities
Specialisation of labour and emergence of guilds
Mercantile law and development of business forms
Technological progress (First, second, third and fourth industrial revolutions)
What are the 3 reasons why consumers and businesses save
Results in capital formation and investment
Earn interest
Loans by businesses and consumers can be acquired through savings
What are 3 reasons why a nation should save
Capital is a major input in growth
No economic growth can occur without capital
No economic growth = no economic development
What are the 4 forms of saving
Corporate savings
Household savings
Government savings
Foreign savings
What are the 3 stages of government and regulation of markets
State involvement in trade
Comparative economic systems
Public finance and the emergence of economic policy
What are the 6 comparative economic systems
Traditional system - Consumers are also producers
Manorialism - Each village was self-sufficient
Feudalism - Social, military and political system based on exchange of land by king for military service
Mercantilism - Major trading nations base their economies on state interference
Communism - State plans and controls economy
Capitalism - Private individuals and businesses own factors of production
Define economic policy
Strategies and measures adopted by a government to manage the economy as a means of achieving its objectives
What are the 3 stages of industrial development
Manufacturing
Technological progress
Urbanistaion and migration
What are the 4 stages of evolution of economic institution
Limited liability companies
Labour unions
Financial institutions and the emergence of joint stock companies
Globalisation and international economic cooperation
