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48 Cards in this Set
- Front
- Back
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An economic system characterized by private or corporate ownership of capital goods |
Free enterprise |
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A range with no clear divisions |
Continuum |
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A period of change in which an economy moves away from central planning toward a market-based system |
Transition |
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To sell state-run firms to individuals |
Privatize |
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To sell state-run firms to individuals |
Privatize |
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The doctrine that government generally should not intervene in the marketplace |
Laissez faire |
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Requires a large capital investment to produce items used in other industries |
Heavy industry |
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Large farms leased from the state to groups of pleasant farmers |
Collective farms |
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Large farms leased from the state to groups of pleasant farmers |
Collective farms |
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A social and political philosophy based on the belief that democratic means should be used to distribute wealthy evenly throughout a society |
Socialism |
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Requiring strict obedience to an authority, such as a dictator |
Authoritarian |
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Characterized by a centrally planned economy with all economic and political power resting in the hands of the central government |
Communism |
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Characterized by a centrally planned economy with all economic and political power resting in the hands of the central government |
Communism |
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Consumers decide what gets produced |
Consumer sovereignty |
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economy with all economic and political power |
Communism |
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Consumers decide what gets produced |
Consumer sovereignty |
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Term economists use to describe the self-regulating nature of the marketplace |
Invisible hand |
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An expectation that encourages people to behave in a certain way |
Incentive |
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The struggle among producers for the dollars of consumers |
Competition |
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One's own personal gain |
Self-interest |
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The market in which households purchase the goods and services that firms produce |
Product market |
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The market in which households purchase the goods and services that firms produce |
Product market |
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The financial gain made in a transaction |
Profit |
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The market in which households purchase the goods and services that firms produce |
Product market |
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The financial gain made in a transaction |
Profit |
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Market in which firms purchase the factors of production from households |
Factor market |
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An organization that uses resources to produce a product, which it then sells |
Firm |
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An organization that uses resources to produce a product, which it then sells |
Firm |
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A person of a group of people living in the same residence |
Household |
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An organization that uses resources to produce a product, which it then sells |
Firm |
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A person of a group of people living in the same residence |
Household |
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The concentration of the productive efforts of individuals and terms on a limited number of activities |
Specialization |
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A combination of traditional, market, and central planned economies |
Mixed economy |
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A combination of traditional, market, and central planned economies |
Mixed economy |
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Relied on habit, custom, or ritual to decide what to produce, how to produce, and to whom to distribute it |
Traditional economy |
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The central government alone decides how to answer all three key economic questions |
Centrally planned economy |
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Economic decisions are made by individuals and are based on exchange, or trade |
Market economy |
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Economic decisions are made by individuals and are based on exchange, or trade |
Market economy |
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The method used by a society to produce and distribute goods and services |
Economic system |
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Economic decisions are made by individuals and are based on exchange, or trade |
Market economy |
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The method used by a society to produce and distribute goods and services |
Economic system |
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Set of government programs that protect people experiencing unfavorable economic conditions |
Safety net |
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Level of economic prosperity |
Standard of living |
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Level of economic prosperity |
Standard of living |
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The income people receive for supplying factors of production-land, labor, capital, or entrepreneur-ship |
Factor payments |
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Level of economic prosperity |
Standard of living |
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The income people receive for supplying factors of production-land, labor, capital, or entrepreneur-ship |
Factor payments |
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An arrangement that allows buyers and sellers to exchange things |
Market |
