Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Economic Systems
Economic Systems G8
| Term | Definition |
|---|---|
| economics system | the way in which a society uses its scarce resources to satisfy its people's unlimited wants |
| traditional economy | an economic system in which people make economic decision based on customs and beliefs that have been handed down from one generation to the next |
| command economy | an economic system in which the government makes all economic decisions |
| market economy | an economic system based on individual choice and voluntary exchange |
| centrally planned economy | a system in which the society's leaders make all economic decisions |
| socialism | an economic system in which the government owns some or all of the factors of production |
| communism | an economic system in which there is no private ownership of property and little or no political freedom |
| authoritarian | requiring absolute loyalty and obedience to authority |
| private property rights | the rights of individuals and groups to own resources and businesses |
| market | any place or situation in which people buy and sell good ans services |
| laissez faire | the principle that the government should not interfere in the economy |
| capitalism | an economic system based on private ownership of the factors of poduction |
| voluntary exchange | a trade in which the parties involved anticipate that the benefits will outweigh the cost |
| profit | the financial gain a seller makes from a business transaction; money left over after the costs of producing a product are subtracted from the income gained by selling that product. |
| competition | the effort of two or more people acting independently to get business by offering the best deal |
| consumer sovereignty | the idea that consumers have the ultimate control over what is produced because they are free to buy what they want and refuse products they do not want. |
| specialization | a situation that occurs when individuals or businesses concentrate their efforts in the areas in which they have an advantage for increased productivity and profit |
| circular flow model | a visualization of all interactions in a market economy |
| product market | the market in which goods and services are bought and sold |
| factor market (resource market) | the market for the factors of production- land, labor, capital and entrepreneurship |
| mixed economy | an economic system that has elements of traditional, command, and market economies, the most common economic system |
| privatize | to change from government or public ownership to private ownership |
| free enterprise system | another name for capitalism a economic system based on private ownership of productive resources |
| open opportunity | the ability of everyone to enter and compete in the market of his or her own free choice |
| free contract | a situation in which people decide for themselves which legal agreements to enter into |
| profit motive | the incentive that encourages people and organizations to improve their material well-being by seeking to gain from economic activities |
| market failure | a situation in which people who are not part of a marketplace interaction benefit from it or pay part of its cost |
| public goods | goods and services provided by the government and consumed by the public as a group |
| free rider | a person who does not pay for a good or service but who benefits from it when it is provided |
| infrastructure | the basic set of support systems- such as power, communications, transportation, water, sanitation, and education systems- needed to keep an economy and society going |
| externality | a side effect of a transaction that affects someone other than the producer or buyer |
| subsidy | a government payment that helps cover the cost of an economic activity that can benefit the public as a whole |
| safety net | government programs designed to protect people from economic hardships |
| transfer payment | money distributed to individuals who do not provide goods or services in return |
Created by:
rudolph.beukes
Popular Earth Science sets