systems for producing, distributing and consuming goods and services
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Economic Systems Vocabulary Review
Economic Systems
Economic Systems
systems for producing, distributing and consuming goods and services
Traditional Bartering
Traditional Bartering
where goods and services are directly exchanged for other goods or
services (no currency (money) is involved)
Command Economy
Command Economy
An economy where supply and price are regulated by the government
rather than market forces. Government planners decide which
goods and services are produced and how they are distributed
Market Economy
Market Economy
A system of allocating resources based only on the interaction of
market forces, such as supply and demand. A true market economy is
free of governmental influence
Mixed Economy
Mixed Economy
in which the government imposes boundaries on capitalism to limit the concentration of power and achieve social balance. The U.S. economic
system is a mixed economy
Capitalism
Capitalism
individuals and companies are allowed to compete for their own economic gain; and free market forces determine the prices of
goods and services. Such a system is based on the premise of separating the state and business activities. Capitalists believe that markets are efficient and
should thus function without interference, and the role of the government is to
regulate and protect
Communism
Communism
economic system characterized by the collective ownership of property and by the organization of labor for the common advantage of all members, state plans and controls the economy and a single, often authoritarian party holds power. (all goods are equally shared by the people, derived from Karl Marx)
Socialism
Socialism
Economic system which is based social organization rather than
competition and advocates centralized planning, distribution, and exchange should be regulated
by the community as a whole.
Globalization
Globalization
Name for the process of increasing the connectivity and interdependence of the world's markets and businesses
(growth to a global or worldwide scale)
Interdependence
Interdependence
A relationship between two or more people, regions, nations or other entities (things) in which each is
dependent on the other for necessary goods or services
Natural Resources
Natural Resources
-Resources occurring in nature that can be used to create wealth.
Examples include oil, coal, water, land, minerals, forests, water.
Raw Materials
Raw Materials
A material or substance used in the primary production or manufacturing
of a good. Raw materials are often natural resources.
Renewable /Non Renewable Resource
Renewable /Non Renewable Resource
A natural resource that can replenish itself over time is renewable (Water,
wind power, solar power). Nonrenewable cannot be replenished
(oil).
Personal Finance
Personal Finance
All financial decisions and activities of an individual, this could include budgeting, insurance, savings, investing, debt servicing (credit
cards), and mortgages.