Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
26 Cards in this Set
- Front
- Back
|
market economy
|
an economic system based on private property and the market in wwhich, in principle, individuals decide how, what and for whom to produce
|
|
|
socialism
|
an economic system based on individuals' goodwill toward others, not on their own self-interest, and in which, in principle, society decides what, how, and for whom to produce
|
|
|
capitalism
|
an economic system based on the market in which the ownership of the means of production resides with a small group of individuals called capitalists
|
|
|
Soviet-style socialist economies
|
economies that used administrative control or central planning to slve the coordination problems: whwat, how and for whom
|
|
|
feudalism
|
an economic system in which traditions rule
|
|
|
mercantilism
|
an economic system in which government deternimes the what, how, and for whom decisions by doling out the rights to undertake certain economic activities
|
|
|
Industrial Revolution
|
a time when techonology and machines rapidly modernized industrial production and mass-produced goods replaced handmade goods
|
|
|
factor market
|
households supply labor and other factors of production to businesses and are paid by businesses for doing so
|
|
|
goods market
|
businesses produce goods and services and sell them to households and government
|
|
|
business
|
private producing units in our society
|
|
|
entrepreneurship
|
the ability to organize and get something done
|
|
|
consumer sovereignty
|
the consumer's wishes determine what's produced
|
|
|
profit
|
whwat'sw left over from total revenues after all the appropriate costs have been subtracted
|
|
|
partnerships
|
businesses with two or more owners: create possibilities for sharing burden, but unlimited liability for each partner
|
|
|
sole propetorship
|
businesses that have only own ownwer: easier to start, yet fewer options
|
|
|
corporations
|
businesses that are treated as a person, and are legally owned by their stockholeders, who are not liable for the actions of the corporate "person"
|
|
|
stock
|
certificates of ownership in a company
|
|
|
equity capital (of a company)
|
proceeds from the sale of stock
|
|
|
limited liability
|
the stockholder's liability is limited to the amount the stockholder has invested in the company
|
|
|
e-commerce
|
buying and selling over the internet
|
|
|
households
|
groups of individuals living together and making joing decisions; the most powerful economic institution
|
|
|
global coproporations
|
corporations with substantial operations on both the production and sales sides in more than one country
|
|
|
WTO
|
an organization committed to getting countries to agree not to impose new tariffs or other trade restrictions except under certain limited conditions
|
|
|
roles of government
|
1)referee
2)actor |
|
|
Effects of Globalization
|
1) inceases competition
2) allows firms to specialize 3) increases the gain to the industry leader by reducing costs, increasing size of market |
|
|
Law of One Price
|
In today's globalized economies, incomes in low-wage countries will likely catch up with incomes in the US over coming decades
|
