social studies

kanecia c.thomas

market economy


A market economy is an economy in which decisions regarding investment, production, and distribution are based on supply and demand,[1] and prices of goods and services are determined in a free price system.[2] The major defining characteristic of a market economy is that investment decisions and the allocation of producer goods are mainly made by negotiation through markets.[3] This is contrasted with a planned economy, where investment and production decisions are embodied in a plan of production.

command ecomany


A market economy is an economy in which decisions regarding investment, production, and distribution are based on supply and demand,[1] and prices of goods and services are determined in a free price system.[2] The major defining characteristic of a market economy is that investment decisions and the allocation of producer goods are mainly made by negotiation through markets.[3] This is contrasted with a planned economy, where investment and production decisions are embodied in a plan of production.

traditional ecomany

A traditional economy is an original economic system in which traditions, customs, and beliefs shape the goods and the products the society creates. Countries that use this type of economic system are often rural and farm-based. Also known as a subsistence economy, a traditional economy is defined by bartering and trading. Little surplus is produced, and if any excess goods are made, they are typically given to a ruling authority or landowner. A pure traditional economy has had no changes in how it operates (there are few of these today). Examples of traditional economies include those of the Inuit or those of the tea plantations in South India.[1] Traditional economies are popularly conceived of as "primitive" or "undeveloped" economic systems, having tools or techniques seen as outdated.[2] As with the notion of contemporary primitiveness and with modernity itself, the view that traditional economies are backwards is not shared by scholars in economics and anthropology.

market

barter

one that bates; specifically : a tannery worker who treats hides in bate to remove lime that was used for unhairing

embargo

an order of a government prohibiting the movement of merchant ships into or out of its ports.


an injunction from a government commerce agency to refuse freight for shipment, as in case of congestion or insufficient facilities.


any restriction imposed upon commerce by edict.


a restraint or hindrance; prohibition.

tariff

A tariff is a tax on imports or exports (an international trade tariff), or a list of prices for such things as rail service, bus routes, and electrical usage (electrical tariff, etc.)



The small Spanish town of Tarifa is sometimes credited with being the origin of the word "tariff", since it was the first port in history to charge merchants for the use of its docks[1] The name "Tarifa" itself is derived from the name of the Berber warrior, Tarif ibn Malik. However, other sources assume that the origin of tariff is the Italian word tariffa translated as "list of prices, book of rates," which is derived from the Arabic ta'rif meaning "making known" or "to define".[2]

quota

the share or proportional part of a total that is required from, or is due or belongs to, a particular district, state, person, group, etc.

a proportional part or share of a fixed total amount or quantity.

the number or percentage of persons of a specified kind permitted to enroll in a college, join a club, immigrate to a country, etc.

trade barrier

Most trade barriers work on the same principle: the imposition of some sort of cost on trade that raises the price of the traded products. If two or more nations repeatedly use trade barriers against each other, then a trade war results.

Economists generally agree that trade barriers are detrimental and decrease overall economic efficiency, this can be explained by the theory of comparative advantage. In theory, free trade involves the removal of all such barriers, except perhaps those considered necessary for health or national security. In practice, however, even those countries promoting free trade heavily subsidize certain industries, such as agriculture and steel

capital

Capital is a type of good that can be consumed now, but if consumption is deferred an increased supply of consumable goods will be available later. Adam Smith defines capital as "That part of a man's stock which he expects to afford him revenue is called his capital." Capital is derived from the Latin word "caput" meaning head, as in "head of cattle".[1] The term "stock" is derived from the Old English word for stump or tree trunk, i.e. something that grows over time.[2] It has been used to refer to all the moveable property of a farm since at least 1510.[3] In Middle Ages France contracted leases and loans bearing interest specified payment in heads of cattle.[4]

In economics, capital goods, real capital, or capital assets are already-produced durable goods or any non-financial asset that is used in production of goods or services.

human capital

Human capital is the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

Alternatively, Human capital is a collection of resources—all the knowledge, talents, skills, abilities, experience, intelligence, training, judgment, and wisdom possessed individually and collectively by individuals in a population. These resources are the total capacity of the people that represents a form of wealth which can be directed to accomplish the goals of the nation or state or a portion thereof.

It is an aggregate economic view of the human being acting within economies, which is an attempt to capture the social, biological, cultural and psychological complexity as they interact in explicit and/or economic transactions. Many theories explicitly connect investment in human capital development to education, and the role of human capital in economic development, productivity growth, and innovation has frequently been cited as a justification for government subsidies for education and job skills training.[1]

"Human capital" has been and continues to be criticized in numerous ways. Michael Spence offers signaling theory as an alternative to human capital.[2][3] Pierre Bourdieu offers a nuanced conceptual alternative to human capital that includes cultural capital, social capital, economic capital, and symbolic capital.[4] These critiques, and other debates, suggest that "human capital" is a reified concept without sufficient explanatory power.

capital good

A capital good is a durable good (one that does not quickly wear out) that is used in the production of goods or services. Capital goods are one of the three types of producer goods, the other two being land and labor, which are also known collectively as primary factors of production. This classification originated during the classical economic period and has remained the dominant method for classification.

Capital goods are acquired by a society by saving wealth which can be invested in the means of production. In terms of economics one can consider capital goods to be tangible. They are used to produce other goods or services during a certain period of time. Machinery, tools, buildings, computers, or other kind of equipment that is involved in production of other things for sale represent the term of a Capital good. The owners of the Capital good can be individuals, households, corporations or governments. Any material that is used in production of other goods also is considered to be capital good.

Many definitions and descriptions of capital goods production have been proposed in the literature. Capital goods are generally considered one-of-a-kind, capital intensive products that consist of many components. They are often used as manufacturing systems or services themselves.

Examples include battleships, oil rigs, baggage handling systems and roller coaster equipment. Their production is often organized in projects, with several parties cooperating in networks (Hicks et al. 2000; Hicks and McGovern 2009; Hobday 1998). A capital good lifecycle typically consists of tendering, engineering and procurement, manufacturing, commissioning, maintenance and (sometimes) decommissioning (Blanchard 1997; Hicks et al. 2000; Hobday 1998; Vianello and Ahmed 2008). [1]

factors of production

In economics, factors of production, resources, or inputs are what is used in the production process in order to produce output—that is, finished goods. The amounts of the various inputs used determine the quantity of output according to a relationship called the production function. There are three basic resources or factors of production: land, labour, and capital. Some modern economists also consider entrepreneurship or time a factor of production. These factors are also frequently labeled "producer goods" in order to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods." All three of these are required in combination at a time to produce a commodity...

Factors of production may also refer specifically to the primary factors, which are land, labor (the ability to work), and capital goods applied to production. Materials and energy are considered secondary factors in classical economics because they are obtained from land, labour and capital. The primary factors facilitate production but neither become part of the product (as with raw materials) nor become significantly transformed by the production process (as with fuel used to power machinery). Land includes not only the site of production but natural resources above or below the soil. Recent usage has distinguished human capital (the stock of knowledge in the labor force) from labor.[1] Entrepreneurship is also sometimes considered a factor of production.[2] Sometimes the overall state of technology is described as a factor of production.[3] The number and definition of factors varies, depending on theoretical purpose, empirical emphasis, or school of economics.[4]

gross domestic product

Gross domestic product (GDP) is defined by the Organisation for Economic Co-operation and Development(OECD) as "an aggregate measure of production equal to the sum of the gross values added of all resident, institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs)."[2]

GDP estimates are commonly used to measure the economic performance of a whole country or region, but can also measure the relative contribution of an industry sector. This is possible because GDP is a measure of 'value added' rather than sales; it adds each firm's value added (the value of its output minus the value of goods that are used up in producing it). For example, a firm buys steel and adds value to it by producing a car; double counting would occur if GDP added together the value of the steel and the value of the car.[3] Because it is based on value added, GDP also increases when an enterprise reduces its use of materials or other resources ('intermediate consumption') to produce the same output.

standard of living

Standard of living refers to the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. The standard of living includes factors such as income, quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, people, hours of work required to purchase necessities, gross domestic product, inflation rate, number of holiday days per year, affordable (or free) access to quality healthcare, quality and availability ofeducation, life expectancy, incidence of disease, cost of goods and services, infrastructure, national economic growth, economic and political stability, political and religious freedom, environmental quality, climate and safety. The standard of living is closely related to quality of life.[1] In 2013, the Human Development Index ranked the top six countries for quality of living as: Norway, Australia, Switzerland, Netherlands, United States and Germany.[2]

literacy rate

This is a list of countries by literacy rate. The figures represent a mixture of data collected by the CIA World Factbook,[1] and national self-reported data. Where data was unavailable, older figures were used. For highly developed/high income countries where literacy statistics were not collected, a rate of 99% was assumed.

medium of exchange

The use of a medium of exchange allows for greater efficiency in the economy and creates more trade in the economy. In a traditional barter system, trade between two parties could only occur if one had and wanted what the other party had and wanted, and vice versa. But the chances of this occurring at the same time are minimal. Let's say one party had a cow and the other had a lawn mower: with a medium of exchange such as gold coins, all the cow owner would have to do is find a buyer for the cow and she would receive gold coins. Then all she would have to do is find someone selling a lawn mower, which she could purchase with gold coins.

mixed ecomany


DEFINITION OF 'MIXED ECONOMIC SYSTEM'

An economic system that features characteristics of both capitalism and socialism. A mixed economic system allows a level of private economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims. This type of economic system is less efficient than capitalism, but more efficient than socialism.

INVESTOPEDIA EXPLAINS 'MIXED ECONOMIC SYSTEM'

Most modern economies feature a synthesis of two or more economic systems. The public sector works alongside the private sector, but may compete for the same limited resources. Mixed economic systems do not block the private sector from profit-seeking, but do monitor profit levels and may nationalize companies that are deemed to go against the public good.

goods

In economics, a good is a material that satisfies human wants[1] and provides utility, for example, to a consumer making a purchase. A common distinction is made between 'goods' that are tangible property (also called goods) and services, which are non-physical.[2] Commodities may be used as a synonym for economic goods but often refer to marketable raw materialsand primary products.[3]

Although in economic theory all goods are considered tangible, in reality certain classes of goods, such as information, only take intangible forms. For example, among other goods an apple is a tangible object, while news belongs to an intangible class of goods and can be perceived only by means of an instrument such as print, broadcast or computer.

services

In economics, a service is an intangible commodity. That is, services are an example of intangible economic goods.

Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusiveownership of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyer's willingness to pay for it. Public services are those, that society (nation state, fiscal union, regional) as a whole pays for, through taxes and other means.

By composing and orchestrating the appropriate level of resources, skill, ingenuity, and experience for effecting specific benefits for service consumers, service providers participate in an economy without the restrictions of carrying inventory (stock) or the need to concern themselves with bulky raw materials. On the other hand, their investment in expertise does require consistent service marketing and upgrading in the face of competition.