Capitalism Flashcards
1
Q
freedom of enterprise
A
people are free to choose how they spend their time and resources
2
Q
self interest
A
people act in their own best interest
3
Q
private property
A
you own and control what you buy; the means of production are owned by private individuals and businesses
4
Q
free markets
A
supply and demand correct themselves without government intervention
5
Q
limited government
A
government intervenes in the market only when necessary for the good of the people
6
Q
adam smith
A
the “invisible hand” - the power of the market to correct itself
7
Q
if a rancher prevents a thief from taking his cattle
A
private property
8
Q
owns and controls property, businesses, investments and income
A
private citizens
9
Q
ability to better oneself without govt. interference
A
personal self-interest
10
Q
note
A
- we have private property but not limited government
- other economic systems do not allow private ownership
- Cuba
- society always maximizes its economic surplus and opportunity
- governments should never set prices
