How does the Economy work? Flashcards
[ Identification ]
Refers to the system which facilitates the movement of goods and services from the production, distribution, and consumption.
Economy
[ Identification ]
Refers to the commodities such as food and clothing.
Goods
[ Identification ]
Refers to the actions or activities done for an individual or a group.
Services
[ Identification ]
Refers to the value of giving an object, gift, or service in turn for something you received.
Reciprocity
[ Identification ]
Process of gathering resources to be redistributed back through social services and public programs.
Redistribution
[ What are these? ]
- Generalized
- Balanced
- Negative
Kinds of Reciprocity
[ Identification: Kinds of Reciprocity ]
Giving without immediately expecting the corresponding return.
Generalized
[ Identification: Kinds of Reciprocity ]
Giving while expecting an immediate return in the exchange.
Balanced
[ Identification: Kinds of Reciprocity ]
One of the parties tries to gain more out of the exchange.
Negative
[ What are these? ]
- Hunting & Gathering
- Agricultural Economy
- Industrial Revolution
- Information Age / Post-Industrial Society
- Fourth Industrial Revolution
Brief Economic History
[ Identification ]
The broad categories that reflect various industry and activity types within an economy.
Economic Sectors
[ What are these? ]
- Primary
- Secondary
- Tertiary
Economic Sectors
[ Identification: Economic Sectors ]
Involves extraction of raw materials from the environment.
Primary
[ Identification: Economic Sectors ]
Involves conversion of raw materials into finished products.
Secondary
[ Identification: Economic Sectors ]
Involves all service oriented transactions.
Tertiary
[ Identification ]
The mechanism the State uses in allocating resources and distributing services to the population.
Economic System
[ What are these? ]
- Capitalism
- Socialism
- Mixed Economy
Economic Systems
[ Identification: Economic Systems ]
Involves the private ownership of the means of production which are considered as sources of wealth.
Capitalism
[ Identification: Economic Systems ]
Involves the collective ownership of the means of production by the State.
Socialism
[ Identification: Economic Systems ]
Classified in between the capitalism and socialist economic systems.
Mixed Economy
[ Identification ]
Can come into different forms and perform different functions which affect the economy of policymaking of the state.
Non-state Institutions
[ What are these? ]
- Banks
- Cooperatives
- Corporations
- Trade / Labor Unions
- Transnational Advocacy Groups
- International Organizations
- Development Agencies
Non-state Institutions (8)
[ Identification: Non-state Institutions ]
Financial institutions that collect cash deposits from customers and lend money to individuals.
Banks
[ Identification: Non-state Institutions ]
- Association of people that ensure the production and sale of goods.
- Also lending economic assistance to those in need.
Cooperatives
