chapter 13 section 3 Flashcards
an economic system in which individuals or corporations, rather than governments, control the factors of production
capitalism
most capitalists were merchants who bought and sold goods
commercial capitalism
capitalists became involved in producing and manufacturing goods
industrial capitalism
factory owner divided process into steps
this was called _____
division of labor
the division of labor increased ______
production
interchangeable parts are _______
identical parts
____________ applied interchangeable parts and division of labor in his factory
Eli Whitney
Eli Whitney’s decision resulted in
speedy production and easy repairs
3 key elements for mass production
division of labor, interchangeable parts, and assembly line
____________ applied assembly line concept to automotive process
Henry ford
business owned and ran by one person
sole proprietorship
business owned and ran by two or more people
partnerships
advantages of these types of businesses
free to make business decisions
profits go to the owner
disadvantages of these types of businesses
absorbs all the costs
limited growth potential
corporation gains complete control of production or sale of a good or service
monopoly
corporations combine to control every stage of the industry
cartel
alternating phases in the economy of prosperity and decline
business cycle
highest level of the cycle is the____
peak
business levels picking up/ rounding the corner
expansion
“Recession”
business going down/ prices going up
contraction
lowest point in the business cycle
Trough
