Vocabulary
Shift of an economy, or part of an economy, from private ownership to government ownership:
What is Nationalization?
Economic system in which the government owns some factors of production & has a role in determining what & how goods are produced:
What is Socialism?
Certificates that could be used to purchase government-owned property during privatization:
What are Vouchers?
What to produce?
How to produce it?
For whom to produce?
What are the questions all societies face economically?
Comprehensive, centralized economic plan used by the Soviet Union & China to coordinate development of agriculture & industry:
What was the Five-Year Plan?
This is Privatization:
What is the conversion of state-owned factories & other property to private ownership?
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?
Central planning authority in the former Soviet Union that devised & direct Five-Year Plans:
What was the Gosplan?
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?
Independently-owned group of Japanese firms joined & governed by an external board of directors in order to regulate competition:
What are the Keiretsu?
The production process requires large amounts of capital in relation to labor:
This is Capitalism:
What is an economic system in which private citizens own & use factors of production to generate profit?
Worst period of economic decline in U.S. history from 1929-1939:
What was the Great Depression?
List how the three questions of economics are answered in these economies: Traditional, Command & Market:
What are:
Traditional:
What to produce?
What people need to survive.
How to produce it?
Hunting, farming, gathering (social roles determine who does what)
For whom to produce?
Make their own products (what they have always made)
Command:
What to produce?
Whatever the government decides
How to produce it?
However the government decides
For whom to produce?
Class reward system; waiting in line/rations
Market:
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?
Ramone in Cars, is this type of car:
What is a 1959 Chevrolet Impala Lowrider?
Number of people per square mile of land area:
What is population density?
Identify & explain a mixed economy. Include how a mixed economy answers the basic economic questions:
What are:
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?
This was the Great Leap Forward:
What was China’s second Five-Year Plan, begun in 1958, which forced collectivization of agriculture & rapid industrialization?
Identify & explain how a mixed economy is different from a market economy:
What are:
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?
Sydney Sweeney and Glen Powell star together in this 2023 romantic comedy:
What is, "Anyone but You"?
This is the Black Market:
What is a market in which goods & services are sold illegally?
Identify & explain the three types of economic systems. Include at least one current world example of each system:
What are:
Traditional Economy:
Based on customs and traditions of a country. Economy is based on farming and hunting.
Command Economy:
Government or other central authority makes decisions about and determines how natural, capital, and human resources will be used.
Market Economy:
Economic system in which private citizens own & use factors of production to generate profit?
This was Perestroika:
What was the fundamental restructuring of the Soviet economy; policy introduced by Gorbachev?
Identify & list at two advantages & disadvantages of three economic systems:
What are:
Advantages:
-Set economic roles for all members of the community.
-Stable, predictable, and continuous life.
Disadvantages:
-Discourages new ideas.
-Stagnation and lack of progress.
2. Command Economies
Advantages:
-Capable of dramatic change in a short time.
-Health and public services available at little or no costs.
-Claims “Equality”.
Disadvantages:
-Does not meet wants and needs of consumers.
-Lacks effective incentives for work.
-Requires large bureaucracy.
-New and different ideas are discouraged.
-Lack of freedom.
3. Market Economies
Advantages:
-Can adjust to change gradually.
-Individual freedom.
-Notable lack of gov’t interference.
-Decentralized decision making.
-Variety of goods and services = Consumer ☺
Disadvantages:
-Rewards only productive resources.
-Must guard against market failure.
These are the seven economic goals a country should strive to achieve:
What are Economic Freedom, Economic Growth, Efficiency, Equity, Full Employment, Stability & Security?