FINAL Flashcards
Circular Flow Model
Businesses: in=selling products/services, out=expenses and taxes
Households: in=wages and payments, out=consumption and taxes
Government: in=taxes, out=services and expenses
Industrialization
natural resources + new ideas produce a boom for industry and railroads, laborers unionize and the government addresses business corruption.
Natural Resources
raw materials used to produce goods. Ex: coal, wood, iron, copper, oil. Abundant in US
Human Resources
Increased population following the Civil War provided a large workforce. Large population also meant more demand.
Bull Market
stock prices are rising
Bear Market
stock prices are steadily dropping
Andrew Carnegie
both Robber Baron and Captain of Industry, gospel of wealth, believed philanthropy>charity
Supply
Products and services businesses are willing to make available
Demand
Products and services consumers are willing to buy
Gross Domestic Product
Total monetary value of all finished goods and services produced within a country’s borders
Gross National Product
Total monetary value of all finished goods and services produced by a country.
Laissez-Faire
government takes a hands off approach to the economy
Command Economy
an economy in which production, investment, prices, and incomes, are determined centrally by a government
Market Economy
an economic system in which production and prices are determined by unrestricted competition between privately owned businesses
Traditional Economy
A traditional economy is a system where goods production and distribution are driven by time-honored beliefs, customs, culture, and traditions.
Social Darwinism
Social evolution based on Darwin’s theory. Applies Darwin’s theory of natural selection to the struggle between workers and employers.
Society should do as little as possible to interfere with whether or not people are fair or successful. The rich are those that fit and the poor are not fit.
Gospel of Wealth
Believed that people should be free to make as much money as they can. After they make it they should give it away. Believed that wealth should Not be left to heirs. Believed that wealth should be distributed before you die. Believed that it was for the rich to give the poor through philanthropy
Vertical Integration
Occurs when a company controls all of the means of production for a particular product
Horizontal Integration
Occurs when a company merges with or takes over another company in the same industry
Captain of Industry
A business leader who means of massing a personal fortune contributes positively to the country in some way
Robber Baron
An American capitalist of the latter part of the 19th century who became wealthy through exploitation of natural resources, government influence, or low wage scales.
Holding Company
Owns enough stock of companies that it controls the company
Monopoly
If one company that merges with or takes over all the companies in the same industry, is considered a monopoly
Pendleton Act
required that jobs be filled by qualified individuals
