Objective 1 Flashcards

By Paul SampsonObjective 3 Flashcards1Traditional EconomyAn economy based on agriculture and simple industry. Every person has a specific role in society that is defined by customs and traditions. Example: Medieval Europe, some economies in Africa, Asia and South America.

2Market (capitalist) EconomyIndividual ownership and control of economic resources. Economic freedom and business competition is encouraged. Examples: United States, Japan.

3IndustrializationThe process of creating a commercial economy by building factories for mass production of goods.

4NationalismThe belief that ones country is of primary importance and in some instances that ones country is naturally superior to all other countries.

5Standard of LivingHow well people live based on income, education, birth-rate, population density, etc.Example: Rich vs. Poor

6Command EconomyGovernment owns and controls economic resources. Reduced freedom and no business competition. Examples: Communist nations like Cuba and North Korea.

7Cottage IndustryTraditional industry that takes place inside the home and produces household goods like clothes and tools. Example: Home-made clothes. A grandmother who makes quilts is like a cottage industry.

8Tariff/DutyA tax on imports and/or exports.

9Free EnterpriseThis idea states that choice, competition, and profit motive as the main motivations for economic growth. Example: The United States.

10GDPStands for Gross Domestic Product: it means the value of goods and services that a country produces per person.The GDP of the United States is $47,132.

11Labor CostsHow much an employer needs to pay laborers. Can be determined by labor laws, customs, and economic factors. Example: Labor in Cambodia is less expensive than labor in France.

12TradeExchange of goods and services.

13GlobalizationThe increase of trade and idea exchange between all countries in the world. Example: You can buy Coca-Cola in Peru.

14ExportA good that is produced for a foreign market.

15Agricultural RevolutionThe time period when humans first domesticated plants and animals.

16Mass ProductionProduction on a large scale, a characteristic of Industrialization.Example: The Ford Focus is a Mass Produced car.

17DemographicA measurement having to do with a group of people. Demographics can have to do with race, age, or any other human characteristic.Example: The average age in Minnesota is higher than in Texas.

18ImportA foreign-produced good.

19Subsistence AgricultureA system where people produce just enough to survive.Example: A farm that grows only enough food for the people that work on it.

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