Economic system defs Flashcards
capitalism
economic system in which individuals are free to own the means of production and maximize profits
land (factor of production)
from the land we can take its natural resources
capital (factor of production)
all human produced goods and services (building,computers)
human capital (factor of production)
knowledge (college)
labor (factors of production)
people need to work; land and capital often provides labor
entrepreneur
an individual with the drive and ambition to combine land, labor, and capital resources to produce goods or offer services
free enterprise system
an economic system characterized by private ownership of capital and by investments that are determined by private decisions, not by the government
free market
a market in which buyers and sellers are free to buy and sell what they want
supply
quantity of good or services available at range of prices
demand
buyers desire to buy a good or service
monopoly
a company that is the only source of a product or service
trust
when several corporations in the same line of business work together to eliminate competition from the market and regulate prices
Sherman Anti-Trust Act
prohibits every type of trust on conspiracy of trade or commence
bourgeoisie
capitalists
proletariat
workers
classless society
equality
nationalization
when the government takes over all privately owned industries
welfare state
a country that provides social services at little or no direct cost
command economy
government bureaucrats plan for the development of the economy over a period of years (green new deal)
communist party
everyone in the country is a part if the Communist party
central planning
the communist government will control and supervise all parts of the economy
collectivization
the government owns all property and all means of production
state ownership
all parts of the economy are owned and controlled by the government (transportation, hospitals, banks)
glasnost
openness
perestroika
restructuring
