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Key Terms
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Authority  Institutionalized power that is recognized by the people over whom it is exercised.
Capitalism  An economic system in which the means of production are held largely in private hands and the main incentive for economic activity is the accumulation of profits.
Charismatic authority  Power made legitimate by a leader's exceptional personal or emotional appeal to his or her followers.
Communism  As an ideal type, an economic system under which all property is communally owned and no social distinctions are made on the basis of people's ability to produce.
Deindustrialization  The systematic, widespread withdrawal of investment in basic aspects of productivity, such as factories and plants.
Democracy  In a literal sense, government by the people.
Dictatorship  A government in which one person has nearly total power to make and enforce laws.
Downsizing  Reductions in a company's workforce as part of deindustrialization.
Economic system  The social institution through which goods and services are produced, distributed, and consumed.
Elite model  A view of society as being ruled by a small group of individuals who share a common set of political and economic interests.
Force  The actual or threatened use of coercion to impose one's will on others.
Industrial society  A society that depends on mechanization to produce its goods and services.
Influence  The exercise of power through a process of persuasion.
Informal economy  Transfers of money, goods, or services that are not reported to the government.
Laissez-faire  A form of capitalism under which people compete freely, with minimal government intervention in the economy.
Mixed economy  An economic system that combines elements of both capitalism and socialism.
Monarchy  A form of government headed by a single member of a royal family, usually a king, queen, or some other hereditary ruler.
Monopoly  Control of a market by a single business firm.
Offshoring  The transfer of work to foreign contractors.
Oligarchy  A form of government in which a few individuals rule.
Peace  The absence of war, or more broadly, a proactive effort to develop cooperative relations among nations.
Pluralist model  A view of society in which many competing groups within the community have access to government, so that no single group is dominant.
Political system  The social institution that is founded on a recognized set of procedures for implementing and achieving society's goals.
Politics  In Harold Lasswell's words, "who gets what, when, and how."
Power  The ability to exercise one's will over others even if they resist.
Power elite  A small group of military, industrial, and government leaders who control the fate of the United States.
Rational-legal authority  Authority based on formally agreed upon and accepted rules, principles, and procedures of conduct that are established in order to accomplish goals in the most efficient manner possible.
Representative democracy  A form of government in which certain individuals are selected to speak for the people.
Socialism  An economic system under which the means of production and distribution are collectively owned.
Terrorism  The use or threat of violence against random or symbolic targets in pursuit of political aims.
Totalitarianism  Virtually complete government control and surveillance over all aspects of a society's social and political life.
Traditional authority  Legitimate power conferred by custom and accepted practice.
War  Conflict between organizations that possess trained combat forces equipped with deadly weapons.







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