Economic systems

KYERANNE YOUNG

CAPITAL

Definition: The wealth, weather in money or property, owned or employed by an individual.

Example: The stocks of goods in a country, city, or town.

CAPITALISM

Definition: an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrast to cooperatively or stateowned means of wealth. Example: making charitable donations to a certain foundation.

Communism

Definition: a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state. Example: you get what you put into it.

Definition: something that is owed or that one is bound to pay. Example: businesses need money to maintain their operations.

DEBT

ECONOMICS
Definition:

financial consideration. Example: command economy

MACRO/MICRO
Macro

Micro

Definition: the branch of economics dealing with the broad and general aspects of an economy, as the relationship between the income and investments of a country as a whole. Example: unemployment

Definition: the branch of economics dealing with particular aspects of an economy, as the price-cost relationship of a firm. Example: a company that makes a product.

FINANCIAL INSTITUTION

Definition: An establishment that focuses on dealing with financial transactions. Example: banks

FINANCIAL MARKET
Definition:

In economics, a financial market is a mechanism that allows people to buy and sell (trade) financial securities. Example: stock exchange

FREE MARKET SYSTEM

Definition: an economic system in which prices and wages are determined by unrestricted competition between businesses, without government regulation or fear of monopolies. Example: the united states constituted a mixed economy.

GDP/GNP
GDP:

Definition: How prosperous a country feels to each of its citizens. Example: Our countries standard of living.

Definition: A measure of the value of all final goods and services produced. Example: The USA buying products from China.

GNP:

GLOBAL
Definition:

the way in which people meet their needs in life. Example: When someone is hungry they take care of themselves and get something to eat.

ECONOMIC-INTERDEPENDENCE
Definition:

A characteristic of a society or macro economy with a high degree of division of labor, where people depend on other people to produce most of the goods and services required to sustain life and living.

Example:

China buys lots and lots of U.S. dollars in order to keep the $ strong and the Yuan low. This means more money for America which, in turn, buys lots and lots of Chinese products

Imports/exports

Definition: to bring in (merchandise, commodities, workers, etc.) from a foreign country for use, sale, processing, reexport, or services. Example: a dairy farm imports its milk to the stores to sell.

Definition: to ship (commodities) to other countries or places for sale, exchange, etc. Example: if you wanted money you would export your good.

MARKET & BUSINESS

MARKET:)

Definition: an open place or a covered building where buyers and sellers convene for the sale of goods.

BUSINESS:)

Definition: an occupation, profession, or trade.

Example: pikes market in Seattle Washington.

Example: Buying something from a grocery store is giving business to that store.

STRUCTURE
Definition:

a complex system considered from the point of view.

Example:

the government system.

MIXED ECONOMY
Definitions:

an economy in which there are elements of both public and private enterprise.

Example:

The United States of America.

MONOPOLY
Definition:

exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices. Compare duopoly, oligopoly.

Example:

Police in pikes market keep the everything in order.

NAFTA
Definition:

North American Free Trade Agreement.

Example:

African Americans are allowed to be in the same schools as white people and they have the same opportunities as white people do in going to college.

Oligopoly
Definition:

the market condition that exists when there are few sellers, as a result of which they can greatly influence price and other market factors. Compare duopoly, monopoly.

Example:

shop.

Getting little to no customers in your

SCARCITY
Definition:

death.

insufficiency or shortness of supply;

Example:

when McDonald's runs out of hamburger patties.

SOCIALISM
Definition:

a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole.

Example:

knowing what to say to certain people to get them to buy your product.

STANDARD OF LIVING
Definition:

a grade or level of subsistence and comfort in everyday life enjoyed by a community, class, or individual.

Example:

the well-educated generally have a high standard of living.

SUPPLY AND DEMAND

Definition: In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market. As demand for an item increases, prices rise. When manufacturers respond to the price increase by producing a larger supply of that item, this increases competition and drives the price down. Modern economic theory proposes that many other factors affect price, including government regulations, monopolies, and modern techniques of marketing and advertising.

Example: ordering something that you are low on and the community needs for that time of year to survive.

TAXATION
Definition:

the act of taxing.

Example:

having to pay your yearly taxes.

TRADITIONAL/COMMAND
TRADITIONAL

Definition: an economic system where decisions are based on customs beliefs, or religion, within a social community. Example: African countries which use agriculture as their main basis for growing food and for jobs

COMMAND

Definition: A system where the government, rather than the free market, determines what goods should be produced. Example: the communistic economy doesnt get new merchandise until the government decides it is time for something to be made in the country.

ECONOMY
Definition:

the management of the resources of a community, country, etc., especially with a view to its productivity.

Example:

The United States has a mixed economy that doesnt limit the resources sold in or out the country.

WTO
Definition:

an international body concerned with promoting and regulating trade between its member states.

Example:

law)

rules that must be followed (like a