Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

29 Cards in this Set

  • Front
  • Back
How does a society define its economic system?
By answering the 3 basic economic questions
What 3 basic economic questions must each society answer?
1. What goods will be produced?
2. How will the goods be produced?
3. For whom will the goods be produced?
A _________ is an economy based on customs and beliefs that have been handed down from one generation to the next.
Traditional Economy
A __________ is an economy with a mixture of capitalist and socialist elements.
Mixed Economy
A _________ is an economic system in which individuals (not government) own most, if not all, the resources and control their use.
Free Enterprise
A _________ is an economic system in which government controls and may own many of the resources.
The ________ is the way all the income earned in a country is divided among different groups of income earners.
Income Distribution
A ________, usually found under Socialism, is a government program specifying economic activities, such as what goods are to be produced and what prices will be charged.
Economic Plan
This term refers to the integration of economic activities across (national) borders; a phenomenon by which economic agents in any given part of the world are affected by events elsewhere in the world; the extension of the division of labor and specialization beyond national borders.
The theory that states that any value in produced goods comes from the labor used to produce those goods is called ________.
The Labor Theory of Value
Work done for a company by people (may or may not be company's employees) is called ________ if the people doing the work live in a country other than the country in which the company is located.
What 2 other names is "Free Enterprise" known as?
"Capitalism" and "Market Economy"
What is another name for Socialism?
Command Economy
In the U.S. the richest 10% of the population own what percent of the nation's wealth?
Who is considered the "Father of Modern Economics" and was known for his views on Free Enterprise?
Adam Smith
Adam Smith's concept that we do good for others not out of kindness but rather for our own personal gain is called ?
The "Invisible Hand"
This individual is best known for his socialist views that self interest and particularly big business is not beneficial but rather harmful for society.
Karl Marx
The difference between the total value of labor and the subsitence wages paid to workers is called ________?
Surplus Value
An economic system that does not extend beyond a country's borders.
National Economy
An economic system that is world wide and economic relationships extend beyond a country's borders and often includes trade and business agreements with countries that possess a different type of economic system.
Global Economy
The period between 1492-1800 when "countries" received most of the benefits of globalization.
Globalization 1.0
The period between 1800-2000 when "businesses" received most of the benefits derived from globalization.
Globalization 2.0
The period from the 2000 to the present in which the "individual and small groups" are the new beneficiaries of globalization.
Globalization 3.0
According to your textbook, what are the 3 causes for globalization today?
1. The end of the cold war
2. Advances in technology
3. Government policy changes
What 3 types of policy changes can government make to increase or slow down the process of globalization?
1. Tariffs
2. Travel Restrictions
3. Investments in foreign countries
A tax on imports is known as a __________?
The benefits of globalization include _______.
1. Free Trade
2. New Markets for our goods and services
3. Increased purchasing power for individuals
4. More efficient use of resources
5. Higher standard of living
6. Longer life expectancy
7. Lower possibilit of war
The "costs" of globalization include _________.
1. Loss of jobs in some countries
2. Increased income inequality worldwide
3. Too much power for big multi-national companies
4. Loss of local cultures
Any work done for a company by people other than the company's employees.