World Economic Systems Study Cards

Enhance Your Learning with World Economic Systems Flash Cards for quick learning



Capitalism

An economic system based on private ownership of the means of production, where individuals and businesses operate for profit and competition determines prices and production.

Socialism

An economic system where the means of production are owned and controlled by the state or the community as a whole, with the goal of achieving social and economic equality.

Communism

A political and economic ideology advocating for the common ownership of the means of production, aiming to create a classless society where resources are distributed based on need.

Mixed Economy

An economic system that combines elements of both capitalism and socialism, with a mix of private and state ownership, and a balance between market forces and government intervention.

Market Economy

An economic system where prices, production, and distribution are determined by the interactions of buyers and sellers in a free market, with minimal government intervention.

Command Economy

An economic system where the government or a central authority controls the means of production, resources, and economic activities, making decisions on behalf of the society.

Traditional Economy

An economic system based on customs, traditions, and cultural beliefs, where economic activities are often subsistence farming, hunting, and gathering.

Feudalism

A social and economic system prevalent in medieval Europe, where land is owned by the nobility and worked by peasants in exchange for protection and a share of the produce.

Mercantilism

An economic theory and practice dominant in Europe from the 16th to the 18th century, emphasizing the accumulation of wealth through trade, colonization, and protectionism.

Colonialism

The policy or practice of acquiring and maintaining colonies to exploit their resources and establish political and economic control over the colonized territories.

Globalization

The process of increasing interconnectedness and interdependence among countries through the exchange of goods, services, information, and ideas on a global scale.

Industrial Revolution

A period of rapid industrialization, technological advancements, and socioeconomic changes in the 18th and 19th centuries, leading to the shift from agrarian to industrial economies.

Post-Industrialism

A stage of economic development characterized by a decline in manufacturing and the rise of the service sector, knowledge-based industries, and information technology.

Neoliberalism

An economic ideology advocating for free markets, deregulation, privatization, and reduced government intervention, aiming to promote economic efficiency and individual freedom.

Keynesian Economics

An economic theory developed by John Maynard Keynes, advocating for government intervention through fiscal and monetary policies to stabilize the economy and promote economic growth.

Monetarism

An economic theory associated with Milton Friedman, emphasizing the importance of controlling the money supply to manage inflation and stabilize the economy.

Marxism

A social, political, and economic theory developed by Karl Marx, advocating for the overthrow of capitalism and the establishment of a classless society based on common ownership.

Fascism

A far-right political ideology characterized by dictatorial power, strong nationalism, suppression of dissent, and control of the economy by the state or a ruling elite.

Anarchism

A political philosophy advocating for the absence of government and the establishment of a society based on voluntary cooperation, self-governance, and mutual aid.

Green Economy

An economic system that aims to promote sustainable development, environmental protection, and the efficient use of resources, while addressing social and economic challenges.

Circular Economy

An economic model that aims to minimize waste, maximize resource efficiency, and promote the reuse, recycling, and regeneration of materials and products.

Sharing Economy

An economic system where individuals and organizations share resources, such as goods, services, and skills, often facilitated through online platforms and peer-to-peer networks.

Gig Economy

An economic system characterized by the prevalence of short-term, freelance, or temporary work arrangements, often facilitated through digital platforms and technology.

Informal Economy

An economic sector that operates outside the formal legal and regulatory frameworks, often involving unregistered businesses, self-employment, and cash-based transactions.

Underground Economy

An economic system consisting of illegal or illicit activities, such as black market transactions, smuggling, tax evasion, and organized crime.

Black Market

An illegal market where goods or services are traded outside the formal channels of commerce, often involving prohibited or restricted items.

Shadow Economy

An economic system consisting of unreported or underreported economic activities, such as informal labor, undeclared income, and off-the-books transactions.

Barter Economy

An economic system where goods and services are exchanged directly without the use of money, relying on the mutual coincidence of wants between trading parties.

Gift Economy

An economic system based on the principles of giving and sharing, where goods and services are exchanged without explicit expectations of immediate or direct reciprocity.

Command and Control Economy

An economic system where the government exercises strict control over all aspects of the economy, including production, distribution, and resource allocation.

Planned Economy

An economic system where the government or a central authority plans and directs economic activities, including production targets, resource allocation, and distribution.

Free Market Economy

An economic system where prices, production, and distribution are determined by the interactions of buyers and sellers in a competitive market, with minimal government intervention.

State Capitalism

An economic system where the state or government owns and controls major industries and resources, often combining elements of capitalism and central planning.

Social Market Economy

An economic system that combines free market principles with social policies and regulations to promote social welfare, economic stability, and fair competition.

Welfare Capitalism

An economic system where private businesses operate within a framework of social welfare policies and government regulations to protect workers and promote social well-being.

Corporate Capitalism

An economic system characterized by the dominance of large corporations and the concentration of economic power in the hands of a few corporate entities.

Laissez-Faire Capitalism

An economic philosophy advocating for minimal government intervention in the economy, allowing free markets to operate without restrictions or regulations.

Entrepreneurial Capitalism

An economic system that emphasizes the role of entrepreneurs and innovation in driving economic growth, with a focus on individual initiative and risk-taking.

Crony Capitalism

An economic system characterized by close relationships between business and government elites, often leading to favoritism, corruption, and the concentration of wealth.

Inclusive Capitalism

An economic system that seeks to address economic inequality and promote shared prosperity by ensuring that the benefits of capitalism are distributed more equitably.

Islamic Economics

An economic system based on the principles of Islamic law (Sharia), emphasizing ethical conduct, social justice, and the prohibition of interest (riba) and speculation (gharar).

Sustainable Development

A development approach that aims to meet the needs of the present generation without compromising the ability of future generations to meet their own needs, balancing economic, social, and environmental considerations.

Circular Flow of Income

A model that illustrates the flow of money, goods, and services between households and businesses in an economy, showing how income is generated, spent, and re-injected into the economy.

Economic Growth

An increase in the production of goods and services in an economy over time, often measured by changes in real GDP (Gross Domestic Product).

Economic Development

A broader concept than economic growth, encompassing improvements in living standards, human well-being, and the overall quality of life in a society.

Economic Inequality

The unequal distribution of income, wealth, and opportunities among individuals or groups within an economy, often measured by indicators such as the Gini coefficient.