Market Economy – economic system in which businesses are owned and run by individuals who are free to decide what to produce
Traditional Economy – an economy in which people do the same kinds of work as they always have done
Command Economy – an economic system in which the government owns all resources and controls business
Budget – a plan used to decide how much money can be spent and how it should be spent
Savings – the amount of money that is left after spending
Interdependence – the relationship between countries whose economies depend on one another for trade
Productive resources – natural resources (ex. Coal, Water, Trees), human resources (ex. Workers) and capital resources (ex. Building, Machines, Tools, Technology)
Specialization – becoming skilled at one kind of job
Division of labor – work that is divided so that it is possible to produce more goods
Supply – the amount of goods available (low supply = higher prices: high supply = lower prices)
Demand – how badly people want a good or service
Goods – tangible items that satisfy people’s wants such as food, clothing, toys, furniture and toothpaste
Services – actions that a person does for someone else such as haircuts, medical check-ups, mail delivery, car repair and teaching
Consumer – a person who pays for a good or service
Producer – a person who creates and supplies goods and/or services
Independence- freedom
Representation- acting or speaking for someone
Loyalist- someone who fought to defend Great Britain
Patriot- someone who fought for the independence of the 13 colonies
Allies- friends, or people that are on your side
Delegate- someone that represents another person or group of people
Liberty- freedom
Taxation- to be forced to pay a tax on something
Intolerable- something that you can not deal with
Repeal- to undo something, especially a law
Tensions- to put stress on a relationship between two groups or two people
Coercive- using force or threats to get what you want
Government- people in charge of a nation, state, or community
Articles of Confederation- original constitution of the US
Constitution- set of rules for the US
Democracy- a system of government by the whole population or all the eligible members of a state, typically through elected representatives
Democratic Republic- is a form of government operating on principles adopted from a republic and a democracy
Direct Democracy- everybody votes on every topic
Representative Democracy- people get to vote on someone who agrees with them, who then represents them for the final decision
Federalism- there can be more than one government over a place
Federal government- government where several states are together; central government of the US
State Government- government of specific state; still accountable to larger governing body
Local Government- government of particular town, county, or district
Bill- proposed legislation that is being considered to become a law
Law- rule for a certain country or area that is agreed on
free state
slave state
fugitive
Underground Railroad
secede
Civil War
emancipate
assassinate
Reconstruction
freedmen
abolish