Economic system defs

Question 1

capitalism

Answer 1

economic system in which individuals are free to own the means of production and maximize profits

Question 2

land (factor of production)

Answer 2

from the land we can take its natural resources

Question 3

capital (factor of production)

Answer 3

all human produced goods and services (building,computers)

Question 4

human capital (factor of production)

Answer 4

knowledge (college)

Question 5

labor (factors of production)

Answer 5

people need to work; land and capital often provides labor

Question 6

entrepreneur

Answer 6

an individual with the drive and ambition to combine land, labor, and capital resources to produce goods or offer services

Question 7

free enterprise system

Answer 7

an economic system characterized by private ownership of capital and by investments that are determined by private decisions, not by the government

Question 8

free market

Answer 8

a market in which buyers and sellers are free to buy and sell what they want

Question 9

supply

Answer 9

quantity of good or services available at range of prices

Question 10

demand

Answer 10

buyers desire to buy a good or service

Question 11

monopoly

Answer 11

a company that is the only source of a product or service

Question 12

trust

Answer 12

when several corporations in the same line of business work together to eliminate competition from the market and regulate prices

Question 13

Sherman Anti-Trust Act

Answer 13

prohibits every type of trust on conspiracy of trade or commence

Question 14

bourgeoisie

Answer 14

capitalists

Question 15

proletariat

Answer 15

workers

Question 16

classless society

Answer 16

equality

Question 17

nationalization

Answer 17

when the government takes over all privately owned industries

Question 18

welfare state

Answer 18

a country that provides social services at little or no direct cost

Question 19

command economy

Answer 19

government bureaucrats plan for the development of the economy over a period of years (green new deal)

Question 20

communist party

Answer 20

everyone in the country is a part if the Communist party

Question 21

central planning

Answer 21

the communist government will control and supervise all parts of the economy

Question 22

collectivization

Answer 22

the government owns all property and all means of production

Question 23

state ownership

Answer 23

all parts of the economy are owned and controlled by the government (transportation, hospitals, banks)

Question 24

glasnost

Answer 24

openness

Question 25

perestroika

Answer 25

restructuring