Vocab
Meeting place or arrangement through which buyers & sellers interact to determine price & quantity of economic product. May be local, regional, national or global:
What is a market?
Economic system in which the government owns some factors of production & has a role in determining what & how goods are produced:
What is socialism?
This was the Great Depression:
What was the worst period of economic decline in U.S. history from 1929-1939?
These are vouchers:
What were certificates that could be used to purchase government-owned property during privatization.?
Market in which goods & services are sold illegally:
What is the black market?
This is GDP per capita:
What is gross domestic product on a per person basis; Expressed in current or constant dollars?
This is capitalism:
What is an economic system in which private citizens own & use factors of production to generate profit?
This is how a traditional economy answers the three basic questions:
What are:
What to produce?
How to produce it?
For whom to produce?
Shift of an economy, or part of an economy, from private ownership to government ownership:
What is nationalization?
Comprehensive, centralized economic plan used by the Soviet Union & China to coordinate development of agriculture & industry:
What was the Five-Year Plan?
Production process requiring large amounts of capital in relation to labor:
What is capital-intensive?
Economic system that has some combination of traditional, command, and market economies:
What is a mixed economy?
This is how a market economy answers the three basic questions:
What are:
What to produce?
• What people want to buy and sell
How to produce it?
• Supply and demand
For whom to produce?
• Determined by how much someone is willing to pay for it?
This is privatization:
What is the conversion of state-owned factories & other property to private ownership?
Forced common ownership of factors of production used in the former Soviet Union in agriculture & manufacturing:
What is collectivization?
This is population-density:
What is the number of people per square mile of land area?
This is communism:
What is an economic & political system in which factors of production are collectively owned & directed by the state; classless society by theory?
This is how a command economy answers the three basic questions:
What are:
What to produce?
How to produce it?
For whom to produce?
Fundamental restructuring of the Soviet economy; policy introduced by Gorbachev:
What was Perestroika?
Central planning authority in the former Soviet Union that devised & direct Five-Year Plans:
What was the Gosplan?
Independently-owned group of Japanese firms joined & governed by an external board of directors in order to regulate competition:
What are the Keiretsu?
Identify & explain the three types of economic systems. Include at least one current world example of each system:
What are:
Traditional Economy:
Command Economy:
Market Economy:
Identify & explain how a mixed economy is different from a market economy:
What is:
Mixed Economies – economic system that has some combination of traditional, command, and market economies.
How are questions answered?
• Individuals but have some government intervention
• Individuals own most resources and determine what and how to produce.
• Government regulates certain industries.
• Has features of both market and command economies.
Example: China, most nations
• The US has a market economy but the government still has control over wages, social security and some policies.
Market Economy:
• Economic system in which private citizens own & use factors of production to generate profit?
Identify & compare the relationship between division of Solidarity, European Union & the black market:
What is:
Solidarity:
European Union:
Black Market:
Solidarity’s presence & emergence during the Eastern Bloc’s Soviet Era signaled the impending end of full communism in Europe, leading to capitalist transition of a combined alliance of economic friendship; the European Union. A carry-over in this transition is the presence of the black market in these countries as both governments & private citizens sought to answer the three economic questions in the name of turning profit?
This was the Great Leap Forward:
What was China’s second Five-Year Plan, begun in 1958, which forced collectivization of agriculture & rapid industrialization?