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60 Cards in this Set
- Front
- Back
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What is an economic institution?
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system of roles and norms that governs the production, distribution, and consumption of goods and services p322
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What are factors of production?
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resources that can be used to produce and distribute goods and services p322
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What is the primary sector?
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sector of the economy that deals with the extraction of raw materials from the environment p323
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What is the secondary sector?
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sector of the economy that concentrates on the use of raw materials to manufacture goods p323
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What is the tertiary sector?
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sector of the economy that concentrates on the provision of services p323
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What is capitalism?
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economic model in which the factors of production are owned by individuals and that is regulated by the forces of profit and competition p325
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What is socialism?
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economic model in which the factors of production are owned by the government, which regulates all economic activity p325
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What is the law of supply?
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principle that states that producers will supply more products when they can charge higher prices and fewer products when they must charge lower prices p325
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What is the law of demand?
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principle that states that the demand for a product increases as the price of the product decreases and demand decreases as price increases p325
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What is laissez-faire capitalism?
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pure form of capitalism in which the government does not interfere in the economy p326
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What is a free-enterprise system?
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an economic system with limited government control of business operations p326
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What is communism?
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political and economic system in which property is communally owned p326
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What is totalitarianism?
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most extreme form of authoritarian government. Under totalitarianism, government leaders accept few limits on their authority. p327
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What are corporations?
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business organization that is owned by stockholders and is treated by law as if it were an individual person p328
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What is an oligopoly?
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situation that exists when a few people control an industry p328
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What is protectionism?
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use of trade barriers to protect domestic manufacturers from foreign competition p330
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What is free trade?
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trade between nations that is unrestricted by trade barriers p330
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What does the term multinational mean?
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it refers to a corporation that has factories and offices in several countries p330
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What is e-commerce?
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economic transactions that occur over the Internet or other electronic communication systems p331
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Who was Adam Smith?
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he was an early economist who used the phrase "invisible hand" to refer to the interplay between the forces of supply and demand p325
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What were some of the ideas of early economist Adam Smith?
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Adam Smith called the interplay between the forces of supply & demand the "invisible hand". He also suggested that specialization could greatly increase productivity. His ideas form the foundation of modern capitalism. p325
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Describe how preindustrial, industrial and postindustrial economic systems differ in terms of the economic sectors that each emphasizes.
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preindustrial systems emphasize the primary sector, industrial systems emphasize the secondary sector, and postindustrial systems emphasize the tertiary sector
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What are the characteristics of the ideal capitalist model of economic systems?
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The characteristics of the ideal capitalist model include that factors of production are owned by individuals, forces of profit and competition regulate economic activity, and minimum government interference. Found in industrial and postindustrial societies. Pure forms are ideal types.
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What are the characteristics of the ideal socialist model of economic systems?
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The characteristics of the ideal socialist model include that factors of production are owned by the government, and economic activity is regulated by the government. Apure forms is an ideal type known as communism. Found in industrial and postindustrial societies.
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What is the ideal system of socialism called?
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communism
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What is power?
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the ability to control the behavior of others, with or without their consent p334, 209
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What is a state?
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a state is a primary political authority in society p334
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What is a political institution?
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a system of roles and norms that governs the distribution and exercise of power in society p334
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What is legitimacy?
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right of those people in power to control, or govern others p334
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What is authority?
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legitimate power p334
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What is traditional authority?
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power that is legitimated by long standing customs p334
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What is rational-legal authority?
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power that is legitimated by formal rules and regulations p333
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What is charismatic authority?
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power that is legitimated on the basis of the personal characteristics of the individual exercising the power p333
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What is coercion?
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power that is exercised through force or the threat of force p335
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What is a democracy?
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type of government in which power is exercised through the people p337
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What is a monarchy?
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type of government in which one person rules. In a monarchy, the ruler comes to power through inheritance. p337
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What is a constitutional monarchy?
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type of government in which the ruler, or monarch, is nothing but a symbolic head of state. Constitutional monarchies are considered democratic because the ultimate power rests with elected officials. p337
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What is democratic socialism?
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combination of a democracy government and a socialist economy p338
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What is authoritarianism?
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type of government in which power rests firmly with the state p338
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What is an absolute monarchy?
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authoritarian type of government in which the hereditary ruler holds absolute power p338
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What is a dictatorship?
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authoritarian type of government in which power is in the hands of a single individual p338
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What is a junta?
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authoritarian type of government in which political power has been seized from the previous government by force p338
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What is a political party?
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organization that seeks to gain power in the government through legitimate means p339
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What is proportional representation?
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system in which a party receives a number of seats in government related to the popular votes they receive 341
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What is an interest group?
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organization that attempts to influence the political decision-making process p342
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What is the power-elite model?
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model in which political power in the United States is said to be exercised by and for the privileged few in society p345
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What is the pluralist model?
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model in which political power in the United States is said to be controlled by interest groups that compete with one another for power p345
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What are some characteristics of a democratic political system?
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power is exercised through the people, gives the governed the right to part to participate in the political system, requres well-informed voters, places limited on power, and have shared values
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What are some characteristics of an authoritarian political system?
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place power in the state, gives citizens little or no say in the political decison-making process, and usually do not allow leaders to be legally removed
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Describe the three forms of legitimate power of authority outline by Max Weber.
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traditional - based on long-standing custom; rational-legal - based on formal rules and regulations; and charismatic - based on a leader's charisma
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What are the major characteristics of the American political system?
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2 major political parties (Democrats & Republicans); interest groups & PACs, which influence government decisions; proportional representation, debate exists over who holds power; executive, legislative, & judicial branches; public participation, but voter participation varies & is low overall
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What are the three branches of the American political system?
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executive, legislative, & judicial
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What are the two major political parties of the American political system?
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Democrats and Republicans
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How do capitalism and socialism differ in terms of ownership of the factors of production and in terms of regulation of economic activity?
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in capitalism factors of production are owned by individuals; in socialism factors of production are owned by the government which regulates economic activity
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How has e-commerce changed the American economy?
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e-commerce has changed the way business is done and the the way businesses advertise and access consumers and suppliers
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How do democratic and authoritarian governments differ in the ways they use power?
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democracy places power in the people, who exercise it by participating in the decision-making process; authoritarian governments place power in the state, who uses it to control the people and to remain in power
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What methods do interest groups and political action committees (PACs) use to win political and public support for their issues?
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they contribute money to political campaigns, collect petitions, organize letter-writing campaigns, vote in blocs, and employ lobbyists
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How do the laws of supply and demand help regulate a a capitalist economy?
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The interplay between the laws of suppy and demand helps keep a capitalist economy in balance when government interference is kept to a minimum and competition is not restricted
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How might oligopolies undermine the self-regulatory features of the free-enterprise system?
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Oligopolies can control the pricing and quality of products and use political pressure tactics to promote legislation that maintains or increases their market share.
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Who was Adam Smith?
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He was an early economist who developed the idea of the "invisible hand" of market forces. He also suggested that specialization could greatly increase productivity. His ideas form the foundation of modern capitalism.
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