Unit 1B Test Review Flashcards
Economy
A system in which people produce, sell and buy things
Traditional Economy
People meet their needs on the basis of their customs some family does the same work generation after generation
Command Economy
Government makes all decisions communism is an example of a command economy
Market Economy
Individuals determines for themselves what to produce, who will want it (demand), how much to produce (supply), and how much to charge (price)
Underdeveloped Economy
A country that is made up of mainly agricultural industries, has a very high unemployment rate, and has a high number of extremely poor people.
Developing Economy
A country that has agriculture as its main industry but it is working on expanding their industries to include manufacturing and technology.
Developed Economy
Countries that have a high level of development, many service industries, and a high level of technology.
Entrepreneur
The creativity and risk need to develop new goods and services.
Gross Domestic Product
The total value of the goods and services that a country produces.
GDP per capita
Per person
Limited Government
The type of government where, through law, some control is placed on the leader’s power.
Unlimited Government
Is a government in which leaders rule without restrictions.
Democracy
Citizens choose the nation’s leaders by voting for them. (Limited government)
Communism
Controls everything and owns all property and the leaders rule without restrictions (unlimited government)
Absolute Monarchy
King or queen governs with complete power. (Unlimited government)
