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Chapter 6
Section 1
Chapter 6 | Section 1 |
---|---|
Free enterprise | system in which lets competition amoung businesses determine the price of products |
capitalism | an economic system in which business, industries, and resources are privately owned |
command economy | an economic system in which the government decides what to produce, where to make it, and what price to charge |
communism | an economic and political system in which the government owns or controls almost all the means of production |
gross national product (gnp) | the total value of goods and services that a country produces in a year |
gross domestic product (gdp) | the total value of goods and services create within a country |
industrialization | the process by which manufacturing based on machine power becomes widespread in an area |
literacy rate | the precentage of people who can read and write |
developed countries | countries with high levels of industralization and high standards of living |
infrastructure | a system of roads, ports, and other facilites needed by a modern economy |
developing countries | countries with less productive economies than developed countries and low standards of living |
market economy | an economic system in which people choose freely what to buy and sell |