Term
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Definition
| A theory or system of social organization based on the holding of major means of production in common, actual ownership of production capital being ascribed to the "workers" as a whole. |
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Term
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Definition
| A theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the state and are subject to its dictates |
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Term
European Socialism
or
Mixed Economy |
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Definition
An economy in which there are elements of both public and privateenterprise. |
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Term
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Definition
| an economic system in which investment in and ownership of themeans of production, distribution, and exchange of wealth is madeand maintained chiefly by private individuals or corporations,especially as contrasted to cooperatively or state-owned means ofwealth. |
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Term
Strengths of a
Command Economy |
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Definition
- Maximises the continues utilization of resources.
- Distributes wealth equally among all people so there
are no economic inequalities.
-Only products that are required are produced hence prevents production of socially undesired products
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Term
Weaknesses of a
Command Economy |
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Definition
Can lack innovation.
No mechanism not detect consumer preferences accurately.
Resources are misallocated as consumer demands are not satisfied by production.
Over-staffing problems, poor product quality, lack of efficiency.
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Term
Strengths of a
Mixed Economy |
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Definition
Some advantages include:
- It mixes the benefits of capitalist nature of private companies and socialist nature of the government.
- Looks to balance economic growth of the economy and income
- Mixed economy allows individuals to run their business and make profits but contribute towards society.
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Term
Potential Weaknesses of a
Mixed Economy |
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Definition
Some disadvantages include:
- Goods and services are produced to benefit the society rather then to benefit the economy.
- Favoritism and bureaucratic nature are still prevalent in a mixed economy.
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Term
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Definition
- There is no ability to have economic equality under capitalism.
- Waste of resources, wealth have excesses and the poor have unmet needs.
- People feel the need to put themselves first because they think no-one will be there to help them if they lose all their money.
- Lets a few businesses to dominate their industry and then they become able to make the rules for their industry.
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Term
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Definition
The government has limited control over business, which lets business compete.
Capitalism lets people choose what kind of work they want to do and where they want to work.
Capitalism has great freedom of choice and lets people decide what they want to do with their money.
Intellectual freedom can lead to high innovation
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Term
Characteristics of Socialist System |
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Definition
-Emphasize public ownership of resources.
-Allows private ownership of businesses and household property.
-Heavy government influence in economic affairs.
-Emphasizes co-operative work for the common good,
-A uniformed class system.
- Modern socialist systems emphasize providing a high standard of living for all citizens and work to eliminate the disparity of wealth.
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Term
Characteristics of
Capitalism |
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Definition
Private property-
the right to own resources and bequeath property
-Freedom of enterprise-own a business
-Freedom of economic choice-work/not work, spend/not
spend.
-Self-interest is considered to be most important |
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Term
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Definition
An economic system in which resources are allocated by inheritance. and basic economic decisions are determined by customs of the culture that relate to sex, age, social status, etc.
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Term
Strengths of a
traditional economy |
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Definition
- Produces only those goods and services which are required for the survival or which they want to consume.
-Hence there is no surplus or wastage and hence it does not waste resources for goods and services which are unnecessary.
- In this economy people know exactly what their roles or job is and hence there is no duplication of effort.
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Term
Weaknesses
of a traditional economy |
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Definition
- tends to resist any changes because they tend to think that ancestrial methods and procedures are always correct.
- thus leading to lower development of technology, have lower standard of living.
- People have to do jobs which they are told to do but which they don’t like and hence it also lowers their productivity. |
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Term
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Definition
Wrote a number of books during his life that has been credited with providing the foundation of modern economics, including "The Wealth of Nations" |
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Term
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Definition
economic ideology where the factors of production are privately owned. |
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Term
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Definition
an economic enterprise whose organization and ownership is controlled by the workers as a group.(often seen but not limited to farming) |
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Term
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Definition
The government legislates and enforces the joining together of workers and property into collectives. |
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Term
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Definition
Fconomic system where basic economic decisions are made by the government and are enforced by law. |
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Term
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Definition
another name for capatilism, BUT is also a market system where individuals are free to produce with LITTLE governmental interference (only to protect the competiton) |
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Term
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Definition
Free market interactions, the principle that government should not interfere in the economy |
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Term
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Definition
An economic system that shares elements of traditional, market, and command economies |
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Term
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Definition
economic system where basic economic decesions are determined by customs of the culture that relate to sex, age, social status, etc. normally they are agrarian and use barter at local level |
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