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
CIE: Economic Systems
| Term | Definition |
|---|---|
| full (liberal) democracy | People control who represents them in government through free and fair elections, multi-party system, respect and protect the rights and views of minorities |
| illiberal democracy (not liberal) | Called a democracy but actually elections are - not free and fair (people are threatened or told what to vote for), -there is only one party, or some candidates are not allowed, and/or - views and rights of minorities are not respected not protected |
| Authoritarian(ism) | Political system, opposite end from democracy. The government tells the people what their rights are |
| Totalitarian(ism) | When the political system is authoritarian and the economic system is on the command end of socialist. |
| Capitalism (or market-mixed economies) | An economic system in which private citizens own and use the factors of production for their own profit or gain. |
| Socialism (or mixed-socialist economies) | Government owns some but not all factors of production. |
| Examples of countries with a predominantly market economy | Singapore, Ireland, Switzerland |
| Examples of countries with a predominantly command economy | North Korea, Cuba, Venzuela |
| populism | us vs. them mentality can lead to democratic backsliding and, at its extreme, violence people can begin to care more about their preferred leader or ideology than about democracy |
| republic | representational democracy (people vote for representatives to make policy choices on their behalf) |
| Who or what makes the major economic decisions in a traditional economy. | tradition and the community elders |
| Give an example of a society likely to have a traditional economy. | Inuit of northern Canada Australian Aborigines Central African Mbuti |
| What advantages does a traditional economy have? | Everyone knows what role they play. There is very little uncertainty. (same jobs as parents, done the same way, and resources distributed as they always have been) |
| What disadvantages does a traditional economy have? | Lack of change and innovation A tendancy to discourage new ideas and ways of doing things A lack of progress that leads to stagnation A lower standard of living than is found in other economic systems |
| In a ____________ economy, a central authority makes the major economic decisions. | command |
| In a ________ economy, the different roles that people play are defined by the customs of their ancestors. | traditional |
| What advantages does a command economy have? | It can provide low-cost food, medicine, and education. It can move quickly - it can enact major changes in just a few decades. |
| What might one find in a store that is part of a command economy? | Some things like food and clothing with very low prices A limited range of goods from which to choose |
| Who or what makes the major economic decisions in a command economy? | A central authority, often referred to as central planners, working under the authority of a monarch or dictator. |
| Who or what makes the major economic decisions in a market, or capitalist, economy? | The market - the interaction between buyers and sellers (or producers and consumers) |
| What characterizes most goods manufactured in a heavily command economy? | Goods can be of questionable quality because managers and workers tend to focus more on filling their quotas than producing quality goods. People are paid roughly the same, regardless of the quality of their work. |
| What represents the "double-edged sword" or main tradeoff in a market economy? | Freedom to make choices. You can make good choices that lead to success; you can make poor choices that lead to failure; you have to fend for yourself even if you don't want to |
| What represents the "double-edged sword" or main tradeoff in a command economy? | Control over peoples' lives. You are told where to live, what job to have, etc. but in exchange for that you are guaranteed to have a place to live and a job, etc. |
| What advantages do market economies have? | They can gradually adjust to change with a high degree of consumer satisfaction. They have a lot of individual freedom. They have a high degree of customer satisfaction. |
| What disadvantages are there of market economies? | High degree of uncertainty Failure to produce (or protect) public goods such as roads, parks, ambulances No guarantee that peoples' needs will be met |
| What are some examples of the US government doing the wealth redistribution part of its job? | money from those who have it: taxes money to those who need it: minimum wage, unemployment security, Social Security, subsidies to essential businesses |
| What historical event marked a turning point in the United States shifting to a capitalist economy to a mixed-market economy? | The Great Depression of the 1930s |
| What types of economies are the most economically developed in the world today? | mixed economies with significant components of capitalism (e.g. Sweden, Singapore, New Zealand, Japan) |
| What has been the predominant world economic trend since the late 1900s? | transition toward capitalism |
| What do countries hope to generate more of by transitioning to capitalism? | wealth |
| Why is transitioning to a market economy challenging for many? | They have to deal with new incentives (reasons to do things) - in a command economy, low quality work may not translate into lower pay, they are unfamiliar with incentives that push people to work hard and well for money |
| What represents the "double-edged sword" or main tradeoff in a market mixed or mixed socialist economy? | all social programs must be paid for by collecting high taxes. |
| Privatization | When a piece of property or business goes from being owned by the government to being privately owned. |
| What are the economy-related functions of the government? | Maintain the legal and social Framework Maintain competition Provide public goods and services Correct for externalities Stabilize the economy Redistribute income |
| Economic goal of a traditional economy | stability and security |
| Economic goal of a market economy (or capitalist economy) | profit, economic freedom, and efficiency |
| Economic goal of a command economy | equity and security |
Created by:
sfoston
Popular Social Studies sets