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Ch. 2 Vocabulary Terms – Economic Systems

Economic Systems An organized way a society provides for the wants and needs of its people.

What to produce? How to produce it? For whom to produce?. The 3 Basic Economic Questions What to produce? How to produce it? For whom to produce?.

- Traditional Economy - Mixed Economy - Communism - Capitalism Write down each of these terms. Leave at least two lines between each term. - Socialism - Traditional Economy - Mixed Economy - Communism - Capitalism - Market Economy - Command Economy

A central authority makes the major decisions about WHAT, HOW, and FOR WHOM to produce. This economy can be headed by a king, a dictator, a president, a tribal leader, or anyone else who makes the major economic decisions. Command Economy

The economic system in which the basic economic questions are answered by custom and habit. Traditional

Economic system in which individuals own the factors of production and answer the three basic questions. Market Economy

The economic and political system in which factors of production are collectively owned and directed by the state; based on a theoretically classless society in which everyone works for the common good. Communism

Economic system in which private individuals own and use the factors of production to generate profits. Capitalism

An economic and political system where the government owns some, but not all of the factors of production (land, labor, capital, and entrepreneurship). Socialism

The economic system that has some combination of traditional, command, and market economies. Mixed Economy

A location or other mechanism that allows buyers and sellers to exchange a specific product. Market

The three basic economic systems.

Traditional, Command, & Market

Shift of an economy, or part of an economy, from private to public ownership. Nationalization

The conversion of government or state owned factories or other property into private ownership. . Privatization

GDP on a per person basis and can be expressed in dollars. GDP per-capita GDP on a per person basis and can be expressed in dollars.

The number of people per square mile of land. Population Density

Rankings of Nations according to Per-Capita GDP 1 Liechtenstein $139,100 2 Qatar $124,500 3 Monaco $115,700 4 Macau $111,600 5 Luxembourg $106,300 6 Bermuda $99,400 7 Singapore $93,900 8 Isle of Man $84,600 9 Brunei $78,200 10 Ireland $75,500 11 Norway $71,800 12 Falkland Islands (Islas Malvinas) $70,800 13 United Arab Emirates $67,700 14 Sint Maarten $66,800 15 Kuwait $66,200 16 Gibraltar $61,700 17 Hong Kong $61,400 18 Switzerland $61,400 19 United States $59,500 20 San Marino $58,600 Rankings of Nations according to Per-Capita GDP

21 Jersey $56,600 22 Saudi Arabia $54,800 23 Netherlands $53,600 24 Guernsey $52,500 25 Iceland $51,800 26 Sweden $51,500 27 Germany $50,400 28 Taiwan $50,300 29 Australia $50,300 30 Austria $49,900 31 Denmark $49,900 32 Andorra $49,900 33 Bahrain $48,500 34 Canada $48,300 35 Belgium $46,600 36 Saint Pierre and Miquelon $46,200 37 Oman $45,200 38 Finland $44,300 39 United Kingdom $44,100 40 Cayman Islands $43,800

41 France $43,800 42 Japan $42,800 43 Malta $42,000 44 Greenland $41,800 45 European Union $40,900 46 Faroe Islands $40,000 47 Korea, South $39,400 48 New Zealand $38,900 49 Spain $38,300 50 Italy $38,100 51 Puerto Rico $37,300 52 Virgin Islands $37,000 53 Cyprus $37,000 54 Israel $36,300 55 Equatorial Guinea $36,000 56 Guam $35,600 57 Czechia $35,500 58 Slovenia $34,400 59 British Virgin Islands $34,200 60 Montserrat $34,000

Services are sold illegally. Black Market Market where goods and Services are sold illegally.

The worst period of economic decline in the U.S. called? The Great Depression

Forced common ownership of the factors of production Forced common ownership of the factors of production. (used in the former Soviet Union) Collectivization

Production process requiring large amounts of capital in relation to labor. Capital-Intensive

The Four Economic Resources or Factors of Production.

Entrepreneurship, Capital, Land, and Labor.