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Economics
Economics Social Studies 30-1
Term | Definition |
---|---|
Stagflation | When a reccession and high inflation occur at the same time |
Economic System | Set of methods and standards by which a society decides and organizes the ownership and allocation of economic resources |
Free Market | Production is carried out in a private enterprise system where all resources are privately owned |
Pure-Communist Economic System | Following Karl Marx is a system where all resources are publicly (gov) owned with a goal of minimizing inequalities of wealth |
Who makes decisions in a command/centrally planned economic system? | Government decides what to make and how to make it |
Who makes decisions in a market system? | The people by what they buy (Supply and Demand) |
What side of the spectrum would embrace a laissez-faire economic system? | Right; Laissez Faire means hands-off/ no gov interference |
Mercantilism | Left wing economic system that believes the aim of all economic pursuits should be to strengthen the power and wealth of the state |
Monopoly | Exclusive ownership/control of trade in a particular good or service |
Reaganomics | Economic policies of Ronald Reagan's USA presidency which support less gov interference in economy, anti-labour rights, anti-government regulations and less regulation policies in general (Right wing would support) |
Keynesian/Demand side Economics | During a Recession, gov should interfere and spend money to create jobs and recover economy |
Supply-Side/Trickle Down Economics | During a Recession, conservatives would want the government to lower tax rates for enterpreneurs so they would invest their tax savings which would create jobs and improve economy |
Fiscal Policies | How gov spends and takes in taxes (public health care, fixing roads, etc.) and how they deal with debt (spend less or tax more) |
Affirmative Action | an action or policy favoring those who tend to suffer from discrimination (eg. gov making a fire department hire at least 20% women and 10% latinos and the rest whomever was best for the job) |
Welfare State | Economy is capitalist but gov uses policies to modify market to ensure economic stability and basic standard of living for all |
Progressive taxation | If you make more money, you get taxed higher |
Thatcherism | China's leader Nikita Khrushchev's version of Reaganomics with little gov intervention and less regulations |
Key economic questions every society must answer (2) | What to produce and how to produce it |
What basic economic goals do societies have? (5) | Full employment, economic growth, economic efficiency, economic stability and economic equity Main 3: growth, stability and full employment |