Economic Systerms

Front 1

~~~Economic Systems~~~

Back 1

All things relating to the production and distribution of wealth within a nation.

Front 2

Traditional

Back 2

1. Based on agriculture
2. Barter trade (N0 money)
3. Neolithic Civilizations
4. Early River Valley Civilizations

Front 3

Feudalism or Manorialism

Back 3

1. Exchange of land for services.
2. Strict social system.
3. Decentralized government.
4. Self-sufficient.

Land controlled by lords allow vassals to use it (protected by warriors & worked by serfs or peasant). Lords swear loyalty to a monarch. Land = Wealth

Front 4

Mercantilism

Back 4

*Benefits the mother country. Colonies are used for raw materials to benefit the mother country. Those raw materials are made into finished products and resold back to the colonies. The policy of building a nation's wealth by exporting more goods than it imports.

Front 5

Capitalism

Back 5

An economic system based on:
1. Private ownership
2. supply and demand
Individuals make the decisions
Adam Smith wrote "Wealth of nations.

Front 6

Communism/Command

Back 6

An economic system based on:
1. Controlled by strong, centralized government
2. Usually focuses on industrial goods
3. Little attention paid to agriculture and consumer goods
4. Karl Marx & Friedrich Engels wrote "The Communist Manifesto."

Front 7

Balance of Trade

Back 7

Favorable B of Trade: more export than import.
Unfavorable B of Trade: more imports than export.

Front 8

Capital

Back 8

Wealth = money, land, machinery

Front 9

Barter

Back 9

To trade without money. Used in a traditional economy. Usually used by tribes.