Traditional economy
The economic system in which the allocation of scarce resources, and other economic activity, is the result of ritual, habit, or custom
Economic system
Organized way a society provides for the wants and needs of its people
Command economy
Economic system characterized by a central authority that makes most of the major economic decisions
Socialism
Economic system in which government owns some factors of production and has a role in determining what and how goods are produced
Market economy
Economic system in which supply, demand, and the price system help people allocate resources and make the WHAT, HOW, AND FOR WHOM to produce decisions; same as free enterprise economy
Market
Meeting place or arrangement through which buyers and sellers interact to determine prices and quantity of an economic product; may be local, regional, national, or global
Capitalism
Economic system in which private citizens phone and use the factors of production in order to generate profits
Mixed economies
Economic system that has some combinations of traditional, command, and market economies
Great Depression
Worst. Of economic decline and US history, lasting from approximately 1929 - 1939
Communism
Economic and political system in which factors of production are collectively owned and directed by the state; a theoretically classless society in which every one works for the common good
GDP per capita
Gross domestic product on a per person basis; can be expressed in current or constant dollars
Privatization
Conversion of state owned factories and other property to private ownership
Vouchers
Certificates that could be used to purchase government owned property during privatization
Five-year plan
Comprehensive, centralized economy plan used by the Soviet Union in China to coordinate development of agriculture and industry
Gosplan
Central planning authority in the former Soviet Union that devised and directed five year plans
Collectivization
Forced common ownership of factors of production; used in former Soviet Union and agriculture and manufacturing
Perestroika
Fundamental restructuring of the Soviet economy; policy introduced by Gorbachev
Great Leap Forward
China's second five year plan, begun in 1958, which forced collectivization and agriculture and rapid industrialization
Nationalization
Shift of an economy, or part of an economy, from private ownership to government ownership
Solidarity
Independent Polish labor union founded in 1980 by Lech Walesa
European Union
Established in 1993 by Maastricht Treaty, its 28 member countries make it the largest single unified market in the world in terms of population and output
Black market
Market and which goods and services are sold illegally
Capital-intensive
Requiring large amounts of capital in relation to labor
Keiretsu
Independently owned group of Japanese firms joined and governed by an external board of durectors in order to regulate competition
Population density
Number of people per square mile of land area
Transitional economy
- driven by custom and traditions passed down
- example Australian Aborigines
- same WHAT/HOW/ FOR WHOM from generation to generation (little changes)
- no new ideas, future is decided for you, strict rules have the effect of punishing those who act or th
Command economies
- government makes all WHO/ WHAT/HOW decisions
- example King, dictation North Korea
- advantages: can change direction drastically in a short amount of time
- disadvantages: consumers needs are not always met
Socialistic economies
- a more liberal version of a command economy where the government owns some, but not all of the factors of production
- example Cuba, Vietnam, Venezuela
Market economies
- producers/ consumers determine the WHAT/HOW/ FOR WHOM
- consumers dollars or a "yes" vote
- wide variety of goods
-High level of uncertainty and economic failure
- examples US, Canada, Germany, France
Capitalism and Free Market
- is a market economy, private citizens own factors of production
- motivation to succeed - entrepreneurs
- people/ businesses make decisions
- competitions lower prices
Characteristics of mixed economies
- traditional government and market each answer some of the WHAT/HOW/FOR WHOM
- come about when people from one type of economy come into contact with other cultures and adult there technologies and ways of doing things, or when people are unhappy with th
Mixed Economies example
communist economies are based on the theoretical ideal of communism, in which everyone contributes according to their needs
In mixed socialism the government owns and controls some but not all of the basic productive resources
Mixed market economy is our
Evaluating mixed economies
- provides assistance for people
- faster growth
-High taxes
- limited availability of services
- lower efficiency than pure capitalism
Privatization, Vouchers
A key feature of capitalism is the ownership of private property, or_________.
To encourage this, some countries have used________ for free at very low prices to purchase government owned property.
Politicians, Companies, Economic, Political, Incentives, Initiative, Prices, Decisions
In Russia, after the Soviet Union collapsed, influential__________ retained power by acquiring large numbers of__________, so the ruling class gained________ power and place of__________ power.
Even after capitalistic practices are in place, people may ha
Five-Year, Gosplan, Perestroika, Ownership, Putin
In Russia, the economy has gone from Stalin's________-_______ Plans, directed by the Central Committee, or _________, to Mikhail Gorbachev's _______ in the 1980s. This led to increased________ of property, which continued until_______, Boris Yeltsin's suc
The Soviet economy had become too complex and too large to be managed by a single planning bureaucracy. Resulted in shortages
What is the major reason that the Five Year Plan in Gosplan failed, and what sort of things did the failure result in?
Government controls energy, natural resources, and defense related industries
In what ways is Russia still not a market based economy?
Great Leap Forward, Industrial, Agriculture, Abandon
China's 1958 five year plan, the_____________, tried to communalize Chinese__________ and _________. The result of its performance led China to ________ the Soviet model.
Hong Kong and Guangdong
China then successfully model does economy after what region?
Free Market, Aging, Pollution
Although China has adopted many________ practices since the 1980s, two significant barriers to its growth are its_________ population and air and water________.
They're loyal and dedicated workforce and respect in the culture
What are the reasons for Japan's successful transition to capitalism?
Tsunami turned them against nuclear energy
Japan
What major event worsen an economic slump in 2011, and how did it influence public opinion?
...
The main difference between capitalism in Japan and the United States is intense_________ involvement with the private sector. Additionally, tightly-knit firms governed by a board of directors, called the___________, reduces the threat of_________
Their GDP ranks about 40th in the world even though it is a small size
What is significant about Singapore size and their per capita income?
Telecommunications, Software, Biotechnology
Singapore's hi GDP is largely due to its specialization in __________ services, __________, and _________
Corruption free environment and economic growth
What are reasons for Singapore is remarkable performance?
Through specialization they could be more successful
Why does Singapore's government only focused on select industries?
Sweden, High-Tech, Welfare
Formerly the model of European socialism,___________ now mixes_______-______ capitalism and generous________
Maternity, education, disability, and old age benefits
What sort of social welfare programs were Sweden known for?
High taxes
What was the opportunity cost of Sweden's great social benefits?
High-tech capitalism and generous welfare benefits
What does Sweden mix for successful economic growth?