Soc: 14 The Economy

  1. economy
    a system of producing and distributing goods and services.
  2. subsistence economy
    a type of economy in which human groups live off the land and have little or no surplus.
  3. conspicuous consumption
    Thorstein Veblen's term for a change from the Protestant ethic to an eagerness to show off wealth by the consumption of goods.
  4. medium of exchange
    the means by which people place a value on goods and services in order to make an exchange, for example, currency, gold, and silver.
  5. barter
    the direct exchange of one item for another.
  6. money
    any item (from sea shells to gold) that serves as a medium of exchange; today, currency is the most common form.
  7. deposit receipt
    a receipt stating that a certain amount of goods is on deposit in a warehouse or bank; the receipt is used as a form of money.
  8. currency
    paper money.
  9. stored value
    the goods that are stored and held in reserve that back up (or provide the value for) a currency.
  10. gold standard
    paper money backed by gold.
  11. fiat money
    currency issued by a government that is not backed by stored value.
  12. gross domestic product (GDP)
    the amount of goods and services produced by a nation.
  13. inflation
    an increase in prices.
  14. credit card
    a device that allows its owner to purchase goods and to be billed later.
  15. debit card
    a device that allows its owner to charge purchases against his or her bank account.
  16. e-cash
    digital money that is stored on computers.
  17. capitalism
    an economic system characterized by the private ownership of the means of production, market competition, and the pursuit of profit.
  18. laissez-faire capitalism
    unrestricted manufacture and trade (literally :hands off" capitalism).
  19. welfare (or state) capitalism
    an economic system in which individuals own the means of production but the state regulates many economic activities for the welfare of the population.
  20. market restraints
    laws and regulations that limit the capacity to manufacture and sell products.
  21. monopoly
    the control of an entire industry by a single company.
  22. socialism
    an economic system characterized by the public ownership of the means of production, central planning, and the distribution of goods without a profit motive.
  23. market forces
    the law of supply and demand.
  24. democratic socialism
    a hybrideconomic system in which capitalism is mixed with state ownership.
  25. convergence theory
    the view that as capitalist and socialist economic systems each adopt features of the other, a hybrid (or mixed) economic system will emerge.
  26. mechanical solidarity
    Durkheim's term for the unity (or shared consciousness) that people feel as a result of performing the same or similar tasks.
  27. organic solidarity
    Durkheim's term for the interdependence that results from the division of labor; people depending on others to fulfill their jobs.
  28. corporation
    the joint ownership of a business enterprise, whose liabilities and obligations are separate from those of its owners.
  29. corporate capitalism
    the domination of the economic system by giant corporations.
  30. stockholders' revolt
    the refusal of a corporation's stockholders to rubber-stamp decisions made by its managers.
  31. multinational corperations
    companies that operate across national boundaries; also called "transnational corporations."
  32. oligopoly
    the control of an entire industry by several large companies.
  33. interlocking directorates
    the same people serving on board of directors of several companies.
  34. quiet revolution
    the fundamental changes in society that follow when vast numbers of women enter the work force.
  35. underground economy
    exchanges of goods and services that are not reported to the government and thereby escape taxation.
  36. leisure
    time not taken up by work or necessary activities.
Card Set
Soc: 14 The Economy
Chap 14 outline: The Transformation of Economic Systems, The Transformation of the Medium of Exchange, World Economic Systems, The Functionalist Perspective on the Globalization of Capitalism, The Conflict Perspective on the Globalization of Capitalism, Work in U.S. Society, Facing the Future: Implications of Global Capitalism, Summary and Review.