AGS Economics Chapter 2 Sections 1-4
Terms
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- Dictatorship
- A government in which the people have no rights; one person or a small group of people rule the country by force and make all the laws
- Welfare
- Aid (money or goods) for those in need
- Tradition
- Something that is passed down from one group to another
- Ancestor
- A person who lives before your time
- Socialism
- The belief that government rather than individuals should own a country's major industries
- Mixed economy
- economy in which there is a blend of economic systems; individuals and the government share in the decision-making process
- Invisible hand
- Adam Smith's idea that competition acts like an invisible hand; it pushes people to do what is best for themselves
- Utilities
- Items such as electricity, water, or gas
- Consumer goods
- Everyday items that people purchase
- Capitalism
- A system in which individuals and private business own and control production (also called market economy)
- Market economy
- system in which individuals and private businesses own and control production (also called capitalism)
- Agriculture
- Farming
- Incentive
- Something that makes a person take an action
- Command economy
- An economy in which government learders give the answers to the three economic questions
- Heavy industry
- Large-scale production of basic items
- Rural
- Away from the city
- Profit
- Money left over after all the costs of production have been paid.
- Traditional economy
- An economy that does things as they were dne in the past; custom and tradititon determine anssers t the three ecomomic questions
- Communism
- A government in which the government owns all property
- Competition
- A contest between businesses or individuals to sell a product or service