Econ Chapter 2 Vocab

3. Organized way a society provides for the wants and needs of its people.
4. Shift of an economy, or part of an economy, from private ownership to government ownership.
6. Worst period of economic decline in U.S. History, lasting from approximately 1929 to 1939.
8. Production process requiring large amounts of capital in relation to labor.
9. Certificates that could be used to purchase government-owned property during privatization.
13. Gross domestic product on a per person basis; can be expressed in current or constant dollar.
14. Independent Polish labor union founded in 1980 by Lech Walesa.
15. Economic system in which supply, demand, and the price system helps people allocate resources and make the WHAT, HOW, and FOR WHOM to produce decisions; same as free enterprise economy.
17. Market in which goods and services are sold illegally.
19. Independently owned group of Japanese firms joined and governed by an external board of directors in order to regulatge competition.
21. Conversion of state-owned factories and other property to private ownership.
22. Forced common ownership of factors of production; used in the former Soviet Union in agriculture and manufacturing.
23. Central planning authority in the former Soviet Union that devised and directed Five-Year plans.
24. Economic system characterized by a central authority that makes most of the major economic decisions.

1. Number of people per square mile of land area.
2. China's second five-year plan, which began in 1958, forced collectivization of agriculture and rapid industrilization.
5. Fundamental restructuring of the Soviet economy; policy introduced by Gorbachev.
7. Successor of the European Coal and Steel Community established in 1933 by the Maastricht Treaty.
10. Economic system in which the allocation of scarce resources and other economic activity is the result of ritual, habit, or custom.
11. Comprehensive, centralized economic plan used by the Soviet Union and China to coordinate the development of agriculture and industry.
12. Economic system that has some combination of traditional, command, and market economies; also see modified free enterprise economy.
16. Meeting place or arrangement through which buyers and sellers interact to determine the price and quantity of an economic product; may be local, regional, national, or global.
18. Economic system in which private citizens own and use the factors of production in order to generate profits.
20. Economic system in which government owes some factors of production and has a role in determining what and how goods are provided.
22. 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.