economy Flashcards
Economy definition
The economy is the social institution that organizes the production, distribution and consumption of goods and services
Key changes in agriculture
- Agricultural technology
- Job specialization
- Permanent settlements (houses)
- Trade
When did Industrial Revolution begin?
Mid 1700s, 1st in England then North America
Industrialization changed economy in 5 fundamental ways:
- New sources of energy
- Centralization of work in factories
- Manufacturing/mass production
- Specialization
- Wage labour
3 ways that the information revolution changed the character of work:
- From tangible products to ideas
- From mechanical skills to literacy skills
- From factories to almost anywhere
Sectors of the economy
Primary, secondary, tertiary
Part of the economy that takes raw materials from natural environment
Primary sector
Part of the economy that transforms raw materials into manufactured goods
Secondary sector
Part of the economy that involves services rather than goods
Tertiary sector
What is gig economy?
Gig workers take on temporary jobs/tasks, usually through apps or companies
What is a global economy?
Expanding economic activity that crosses national borders
The 5 major consequences of the development of global economy?
- Global division of labour
- Products pass through several nations
- National gov. has less control over goods
- Small number of large companies control most of the global market
- concerns about rights/opportunities of workers
What are the 2 general economic systems?
Capitalism and Socialism
An economic system in which natural resources and the means of producing goods/services are privately owned
Capitalism
An ideal capitalist economy features 3 things:
- Private ownership of property
- Pursuit of personal profit
- Competition and consumer choice
An economic system where natural resources and producing goods/services are collectively owned
Socialism
3 features of an ideal socialist economy:
- Collective ownership of property
- Pursuit of collective goals
- Gov. control of economy
What is communism?
- The gov. controls everything
- All members of society are equal
- Abolishes all class divisions
A market economy (businesses are mostly privately owned), with gov. support to help citizens
Welfare Capitalism
Why are taxes higher in a welfare capitalist economy?
Because of social-welfare programs (education, healthcare, benefits, pensions)
Which countries have a welfare capitalist economy?
Canada, U.S, U.K and Germany
Businesses are privately owned but gov. works closely to help financially and control foreign imports
State Capitalism
Which countries participate in a state capitalist economy?
Brazil, China, Russia, Thailand, South Africa and Turkey
Work in Canada’s Post-Industrial Economy:
- Decline in agricultural work (now machines)
- Shift from factory work to service work
- Creation of dual-labour markets
