Economy
Social institution that organizes the ways in which a society produces, distributed, and consumes goods and services
Good
objects that have an economic value to others
Services
Economically productive activities that do not result directly in a physical product
Pre-Industrial Agricultural Economy
Rise of "cottage industries"
Production of food surpluses allowed people to barter and sell goods
New economic role for merchants
Industrial Economy
Increased use of machinery and mass production
Mass production: large-scale, highly standardized manufacturing of identical commodities on a mechanical assembly line
Development of a class society
Urbanization
Henry Ford: introduces modern mass production
Reserve army of labor
a pool of job seekers whose numbers outpace the available positions and who contribute to keeping wages low and conditions of work tenuous
Scientific management
practice that sought to use principles of engineering to reduce the physical movements of the workers to increase efficiency
Post-industrial economy
Rising number of low-wage jobs, part-time work
More emphasis on education and skills
Increased outsourcing
Growth of automation: replacement of human labor by machines in the process of manufacturing
Symbolic analysts: highly educated professionals who en
Emotional labor
commodification of emotions, including management of feeling to create an observable facial and bodily display
Capitalism
an economic order characterized by the market allocation of goods and services, production for private profit, and private ownership of the means of producing wealth
Communism
An economic system without private ownership of the means of production and economic classes or economic inequality
Socialism
an economic system in which the government manages the economy in the interests of the workers
Work
any human effort that adds something of value to the goods and services that are available to others
Formal economy
work-related activities that provide income and are regulated by government
Informal economy
all income-generating activities not reported to the government as required by law
Globalization
Deeper economic integration
Corporations are now multinational instead of just national
Raw materials may be sourced in one country and shipped to another for production
Manufacturing of a product can be done in several countries
Management, sales, and pr