chapter 2

5. fundamental restricting of the Soviet economy; policy introduced by Gorbachev
9. number of people per square mile of land area
13. production process requiring large amounts of capital in relation to labor
14. 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
15. 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
17. worst period of economic decline in U.S. history, lasting from approximately 1929 to 1939
19. organized way a society provides for the wants and needs of its people
20. conversion of state-owned factories and other property to private ownership
21. shift of an economy, or part of an economy, from private ownership to government ownership

1. comprehensive, centralized economic plan used by the Soviet Union and China to coordinate development of agriculture and industry
2. certificates that could be used to purchase government-owned property during privatization
3. independent Polish labor union founded in 1980 by Lech Walesa
4. which government owns some factors of production and has a role in determining what and how goods are produced
6. system in which private citizens own and use the factors of production in order to generate profits
7. central planning authority in the former Soviet Union that devised and directed Five-Year Plans
8. China's second Five-Year Plan, begun in 1958, which forced collectivization of agriculture and rapid industrialization
10. market in which goods and services are sold illegally
11. forced common ownership of factors of production; used in the former Soviet Union in agriculture and manufacturing
12. independently owned group of Japanese firms joined and governed by an external board of directors in order to regulate competition
16. 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
18. successor of the European Coal and Steel Community established in 1993 by the Maastricht Treaty