Economic Ideologies Flashcards
Communism
A system where goods are owned in common (common ownership) and are available to all as needed. It advocates for the elimination of private property.
Capitalism
An economic system in which there is provate ownership of capitol goods and competition within a free market.
Socialism
An economic system as well as a social and political theory where the means of production is owned by the community as a whole.
What is a traditional economy?
An economy where customs and traditions guide factors of production. Usually there is no one currency.
What is a command economy?
An economy where a central authority guides the factors of production. There is usually no input from the people.
What is a market economy?
An demand based economy where consumers guide the factors of production.
What is a mixed economy?
A mix of; trade, command and market economies.
What are rivalrous (excludable) goods?
Goods that are privately owned and can be excluded from those who cannot afford them.
What are rivalrous (non-excludable) goods?
Common resources that can be used/bought by almost anyone. However, once they have been used/sold, their availability decreases.
(natural depletable resources)
What are non-rivalrous (excludable) goods?
Goods that can be publicly accessed yet require status, money or power to do so.
What are non-rivalrous (non-excludable) goods?
National military defense.
