Chapter 2

3. market in which goods and services are sold illegally
4. fundamental restricting of the Soviet economy; policy introduced by Gorbachev
5. (EU) successor of the European Coal and Steel Community established in 1993 by the Maastricht Treaty
8. economic system which government owns some factors of production and has a role in determining what and how goods are produced
10. economic system in which private citizens own and use the factors of production in order to generate profits
13. economic system in which supply, demand, and the price system help people allocate resources and make the what, how, and for whom to produce decisions, same as free enterprise economy
18. comprehensive,centralized economic plan used by the Soviet Union and China to coordinate development of agriculture and industry
19. shift of an economy, or part of an economy, from private ownership to government ownership
20. numberof people per square mile of land area
21. economic system in which the allocation of scare resources, and other economic activity is the result of ritual, habit, or custom
23. meeting place or arrangement through which buyers and sellers interact to determine price and quantity of an economic product; may be local regional, national, or global
25. production process requiring large amounts of capital in relation to labor

1. certificates that could be used to purchase government-owned property during privatization
2. economic system that has some combination of traditional, command, and market economies; also see modified free enterprise economy
6. independently owned group of Japanese firms joined and governed by an external board of directors in order to regulate competition
7. forced common ownership of factors of production; used in the former Soviet Union in agriculture and manufacturing
9. economic system characterized by a central authority that makes most of the major economic decisions
11. central planning authority in the former Soviet Union that devised and directed Five-Year Plans
12. economic and political system in which factors of production are collectively owned and directed by the state; a theoretically classless society in which everyone works for the common good
14. gross domestic product on a per person basis: can be expressed in current or constant dollars
15. independent Polish labor union founded in 1980 by Lech Walesa
16. organized way a society provides for the wants and needs of its people
17. worst period of economic decline in U.S. history, lasting from approximately 1929 to 1939
22. conversion of state-owned factories and other property to private ownership
24. China's second Five-Year Plan, begun in 1958, which forced collectivization of agriculture and rapid industrialization