Leach Sociology Terms Chapter 13
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| economic institution | system of roles and norms that governs the production, distribution and consumption of goods and services
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| factors of production | resources that can be used to produce and distribute goods and services
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| primary sector | sector of the economy that deals with the extraction of raw materials from the environment
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| secondary sector | sector of the economy that concentrates on the use of raw materials to manufacture goods
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| tertiary sector | sector of the economy that concentrates on the provision of services
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| capitalism | economic model in which the factors of production are owned by individuals and that is regulated by the forces of profit and competition
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| socialism | economic model in which the factors of production are owned by the government, which regulates all economic activity
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| law of supply | principle that states that producers will supply more products when they can charge higher prices and fewer products when they must charge lower prices
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| law of demand | principle that states that the demand for a product increases as the price of the product decreases and demand decreases as price increases
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| laissez-faire capitalism | pure form of capitalism in which the government does not interfere in the economy
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| free-enterprise system | an economic system with limited government control of business operations
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| communism | political and economic system in which property is communally owned
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| totalitarianism | most extreme form of authoritarian government
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| corporations | business organization that is owned by stockholders and is treated by law as if it were an individual person
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| oligopoly | situation that exists when a few people control an industry
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| protectionism | use of trade barriers to protect domestic manufacturers from foregn competition
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| free trade | trade between nations that is unrestricted by trade barriers
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| multinational | a corporation that has factories and offices in several countries
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| e-commerce | economic transactions that occur over the Internet or other electronic communication systems
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| power | ability to control the behavior of others, with or without their consent
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| state | primary political authority in society
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| political institution | system of roles and norms that governs the distribution and exercise of power in society
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| legitimacy | right of those people in power to control, or govern, others
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| authority | legitimate power
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| traditional authority | power that is legitimated by longstanding customs
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| rational-legal authority | power that is legitimated by formal rules ad regulations
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| charismatic authority | power that is legitimated on the basis of the personal characteristics of the individual exercising the power
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| coercion | power that is exercised through force or the threat of force
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| democracy | type of government in which power is exercised through the people
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| monarchy | type of government in which one person rules
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| constitutional monarchy | type of government in which the ruler, or monarch, is nothing more than the symbolic head of state
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| democratic socialism | combination of a democratic government and a socialist economy
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| authoritarianism | type of government in which power rests firmly with the state
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| absolute monarchy | authoritarian type of government in which the hereditary ruler holds absolute power
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| dictatorship | authoritarian type of government in which power is in the hands of a single individual
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| junta | authoritarian type of government in which political power has been seized from the previous government by force
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| political party | organization that seeks to gain power in the government through legitimate means
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| proportional representation | system in which a party receives a number of seats in government related to the popular votes they receive
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| interest group | organization that attempts to influence the political decisionmaking process
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| power-elite model | model in which political power in the United States is said to be exercised by and for the priviledged few in society
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| pluralist model | model in which the political process in the United States is said to be controlled by interest groups that compete with one another for power
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