Economics Flashcards
Business Cycle
The periodic expansion and contraction of economic activity in a market economy
Capitalism
An economic system where private individuals own and control resources and production for profit
Classical liberalism
A political and economic philosophy emphasizing individual freedom, limited government, and free markets
Free enterprise
An economic system where businesses operate with minimal government interference
Iron Law of Wages
A theory suggesting that wages naturally settle at a level sufficient for workers’ subsistence
Industrialization
Transforming an economy from agrarian-based to one dominated by industry and manufacturing
Industrial Revolution
A rapid industrial growth and technological innovation starting in the late 18th century
Inflation
The rate at which the general level of prices for goods and services rises over time
Invisible Hand
Adam Smith’s concept of self-regulating market forces guiding economic activity
Laissez-faire
An economic policy advocating minimal government intervention in the economy
Mercantilism
An economic theory focused on accumulating wealth through trade surpluses and colonial expansion
Privatization
The transfer of ownership of businesses or assets from the public sector to private individuals or organizations
Profit Motive
The incentive to engage in activities that generate financial gain
Price system
A mechanism where prices are determined by supply and demand to allocate resources in a market economy
Private Property
Ownership of resources and goods by individuals or businesses rather than the state
Recession
A significant decline in economic activity across the economy lasting more than a few months
Social Darwinism
A theory applying natural selection concepts to human society, often used to justify inequality
Adam Smith
An 18th-century economist known as the “Father of Economics” for his work on free markets and the invisible hand.
John Stuart Mill
A philosopher and economist who advocated for individual liberty, social reform, and utilitarianism
Thomas Malthus
An economist who theorized that population growth would outpace food supply, leading to societal challenges
Bourgeoisie
The capitalist class owning the means of production in Marxist theory
Class conflict
The struggle between social classes, particularly between the bourgeoisie and proletariat, over economic and political power
Collectivism
A principle of giving priority to group interests over individual interests
Collectivized farms
Agricultural production systems where land and resources are owned and managed collectively, often by the state
Communism
A political and economic ideology advocating for a classless society and collective ownership of significant economic resources
“Cradle to Grave”
A concept of providing lifelong social welfare and support to citizens
Glasnost
A policy of openness and transparency in government and media introduced by Mikhail Gorbachev
GOSPLAN
The central planning agency responsible for economic planning in the Soviet Union
Marxism
A socio-economic theory by Karl Marx advocating for the abolition of class systems through revolutionary socialism
Nationalization
The transfer of private assets or industries to government ownership and control
New Economic Policy
A policy introduced by Lenin in 1921 allowing limited market-oriented reforms in the soviet union
Perestroika
A policy of restructuring the soviet economy and political system initiated by Mikhail Gorbachev
Planned Economy
An economic system where production and distribution are regulated by a central authority
Proletariat
The working class, particularly those who do not own the means of production, in marxist theory
Socialism
An economic and political system advocating for social ownership and equitable distribution of resources
Utopian Socialists
Early socialist thinkers who envisioned ideal societies based on equality and cooperation
Karl Marx
A 19th century philosopher and economist who co-authored the Communist Manifesto and developed Marxism
Robert Owen
A social reformer and industrialist who pioneered cooperative communities and utopian socialism
Lenin
The leader of the Russian Revolution and founder of the Soviet state, advocating for Marxist-Leninist principles
Stalin
The leader of the Soviet Union who implemented authoritarian rule and centralized economic planning
Indicative Planning
A form of economic planning that guides market activity through forecasts and incentives rather than directives
Deficit Financing
Government borrowing to cover expenditures exceeding revenue, often to drive growth and job creation
Fiscal Policy
Government decisions on taxation and spending to influence the economy
Demand-side Economics
An economic theory focusing on increasing consumer demand to drive growth and job creation
Keynesian Economics
An economic theory advocating for active government intervention to stabilize economic cycles
Mixed Economy
An economic system combining elements of capitalism and socialism with both private and public enterprise
Monetary Policy
The management of a nation’s money supply and interest rates by a central bank to control inflation and economic stability
New Deal
A series of programs and reforms introduced by F.D. Roosevelt to combat the Great Depression
Progressivism
A political movement advocating for reforms to address social inequality, corruption, and economic issues
Progressive Taxation
A tax system where the tax rate increases as income levels rise
Tariffs
Taxes imposed on imported goods to protect domestic industries or raise gov revenue
Unions
Organizations of workers formed to protect and advance their rights and interests
Universal (e.g. Health Care)
Public services or programs provided to all citizens regardless of income or status
Welfare Capitalism
A system where businesses provide social welfare programs to improve worker conditions and prevent civil unrest
Theodore Roosevelt
A US President who is known for his progressive policies, conservation efforts and trust-busting
Trust-busting
Government tools to break up monopolies when they control too much of the market share and prevent competition
Welfare State
A government system ensuring social protection and economic security for its citizens through programs like healthcare and unemployment
F.D. Roosevelt
A US president who led the country through the Great Depression and World War II, introducing the New Deal
J.M. Keynes
An economist whose theories on government intervention reshaped modern macroeconomics and fiscal policy
Macroeconomics
The study of the performance, behaviour, structure and decision-making of an economy as a whole
Justin Trudeau
The Prime Minister of Canada is known for progressive policies on climate, diversity, and social welfare
Deregulation
Thee removal or reduction of government controls and rules in industries to encourage competition and efficiency
Flat Tax Rates
A tax system where all income levels are taxed at the same percentage rate
Monetarism
An economic theory emphasizing the control of the money supply to manage inflation and economic stability
Neo-Conservatism
A political ideology focusing on free markets, limited government, and a strong national defence
Reaganomics
The economic policies of Ronald Reagan emphasized tax cuts, deregulation, and supply-side economics
Stagflation
A situation of high inflation combined with stagnant economic growth and high unemployment
Supply-side Economics
An economic theory focusing on boosting production and investment through tax cuts and deregulation
Milton Friedman
An economist known for advocating monetarism and free-market policies
Ronald Reagan
A US president known for his conservative economic policies, including Reaganomics, and deregulation
Margaret Thatcher
A British Prime Minister known for promoting free markets, privatization, and reducing government intervention
Ralph Klein
A former Premier of Alberta, Canada, known for fiscal conservatism and reducing public debt through budget cuts
Danielle Smith
The current Premier of Alberta, Canada, known for her focus on provincial autonomy and conservative policies
