Ch 17

Cottage industries

A cottage industry is an industry—primarily manufacturing—which includes many producers, working from their homes, typically part time. The term originally referred to home workers who were engaged in a task such as sewing, lace-making, wall hangings, or household manufacturing.

Profit

A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business.

Mixed economy

A mixed economy is an economic system that is variously defined as containing a mixture of markets and economic planning, in which both the private sector and state direct the economy; or as a mixture of public ownership and private ownership; or as a mixture of free markets with economic interventionism.

Socialist economy

A socialist economic system is based on some form of social ownership of the means of production, which may mean autonomous cooperatives or direct public ownership; wherein production is carried out directly for use.

Traditional economy

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.

Economic system

An economic system is a system of production and exchange of goods and services as well as allocation of resources in a society.

Free enterprise system

An economic system where few restrictions are placed on business activities and ownership. In this system, governments generally have minimal ownership of enterprises in the market place. This system aims for limited restrictions on trade and minimal government intervention.

Economists

An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy.

Commercial industries

Commercial industries are usually factory-based and employ many workers. Each worker typically participates in one small step of the manufacturing process, rather than making an entire product from start to finish. The purpose of a commercial industry is widespread production: to sell as many products as possible to consumers. To do so, commercial industries typically use new and more cost-effective technologies than cottage industries.

Economics

Economics is the social science that studies production, distribution, exchange and consumption of goods and services, and the private and public choices concerning the allocation of scarce means and resources.

Problem of scarcity

Scarcity is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs.

Subsistence agriculture

Subsistence agriculture is self-sufficiency farming in which the farmers focus on growing enough food to feed themselves and their families. The typical subsistence farm has a range of crops and animals needed by the family to feed and clothe themselves during the year

Supply and demand

Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers.

Communist economy

The communist economic system is one where class distinctions are eliminated and the community as a whole owns the means to production

Capitalism

an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.