Economics - Vocabulary Unit 2

Front 1

Capitalism

Back 1

Economic system where private citizens own

and use the factors of production to

generate profits.

Front 2

Socialism

Back 2

Economic system where

government owns

some factors of

production and has

a role in determining

what and how goods

are produced.

Front 3

Communism

Back 3

Economic and

political system owned

and directed by the

state. Theoretically

it is a classless society

where everyone works

for the common good.

Front 4

Five Year Plan

Back 4

Comprehensive

centralized economic

plan used by the

Soviet Union and

China to coordinate

development of

agriculture and

industry.

Front 5

Collectivization

Back 5

Forced common

ownership of factors

of production. It was

used in the former

Soviet Union in

agriculture and

manufacturing

under Stallin

Front 6

Gosplan

Back 6

Central planning

authority in the

former Soviet

Union that

devised and directed

the Five Year Plan

Front 7

State Farm

Back 7

Large farms owned

and operated by the

state in the former

Soviet Union

Front 8

Collective Farm

Back 8

Small farms owne

and operated by the

state. They were

operated by

families who

shared in some of

the profits

Front 9

Piecework

Back 9

Compensation

system that pays

workers for units

produced rather

than in hours

worked

Front 10

Storming

Back 10

Soviet Practice of

rushing production

at the end of the

month to meet

quotas. This

resulted in the

production of

shoddy goods.

Front 11

Perestroika

Back 11

Fundamental

restructuring of the

Soviet economy.

This policy was

introduced by

Gorbachev

Front 12

Privitiation

Back 12

Conversion of

state-owned factories

and other property

to private ownership.

Front 13

Solidarity

Back 13

Independent Polish

labor union founded

in 1980 by Lech

Walesa

Front 14

Black Market

Back 14

Market where

economic products

are sold illegally.

Front 15

Capital -

Intensive

Back 15

Production method

requiring relatively

large amounts of

capital relative

to labor.

Front 16

Great Leap

Forward

Back 16

China's disasterous

second five year

plan started in 1958

that forced

collectivization of

agriculture and

rapid industrialization

Front 17

Keiretsu

Back 17

Independently

owned group of

Japanese firms joined

and governed by an

external board of

directors in order to

regulate competition

Front 18

Infrastructure

Back 18

The highways, mass

transit, communications,

power, water, sewerage

and other public goods

needed to support

a population

Front 19

Collateral

Back 19

Property or other

security used to

guarantee repayment

of a loan

Front 20

Transparency

Back 20

Making business

dealings more

visible to everyone,

especially

government

regulators.