Industrial Revolution Flashcards
crop rotation
planting crop based on the health of the soil
industrialization
the process of developing machine production of goods
factors of production
the recourses needed to produce goods and services that the industrial revolution required , including land labor and wealth
factory
large buildings containing machines to create product
entrepreneur
a person who organizes, manages, and takes on the risks of a business
urbanization
city building and movement of people to cities
Middle class
social class made up of skilled workers, professionals, business people and wealthy farmers
stock
certain rights of ownership
corporation
a business owned by stockholders who share in its profits, but are not personally responsible for its debts
Laissez faire
the economic policy of letting owners of industry and business set working conditions without interference
3 natural laws of economics
the law of self interest ( people work for their own good) law of competition (competition forces people to make a better product) the law of supply and demand (enough goods would be produced at the lowest possible price to meet demand in a market economy)
capitalism
economic system in which the factors of production are privately owned and money is invested in business ventures to make profit.
Utilitarianism
philosophy introduced by Jeremy Bentham, where people judged ideas, institutions and actions on the basis of their utility, or usefulness.
socialism
economic system where the factors of production are owned by the public and operate for the welfare of all.
Karl Marx
german journalist who introduced the world to a radical type of socialism : Marxism. father of communism, wrote the communist manifesto
Jeremy bentham
introduced utilitarianism, argued that the government should try to promote the greatest good for the greatest number of people. believed that the individual should be free to pursue his or her own advantage without interference from the state
Adam Smith
professor at university of glasgow, scotland, defended idea of free economy. believed liberty guaranteed economic progress. introduced the three laws of economics