Market Liberalism

Question 1

What is a dominant ideology in Western nations?

Answer 1

Democracy, a system where everyone has the freedom to say how they think the country should be run

Question 2

Private enterprise;

Answer 2

Companies are owned by individuals and groups and not the state

Question 3

Free market;

Answer 3

Anyone can set up their own business and compete with others. No limits set by governments

Question 4

Supply and demand;

Answer 4

The more consumers demand particular products, the more companies/industries supply them - if producers supply the goods consumers want they get rich; if they get it wrong they can go bust

Question 5

Competition;

Answer 5

Producers compete to provide the most appealing product, benefits both producer and consumer

Question 6

Cartel;

Answer 6

Companies get together to agree fixed, usually inflated prices for the goods they sell

Question 7

Regulation;

Answer 7

The government can intervene to prevent false claims made about the performance of goods, cartels, monopolies etc

Question 8

Minimal Intervention;

Answer 8

The government puts minimum laws in place to regulate standards, allowing the market to regulate itself

Question 9

Monopoly;

Answer 9

Tendency of large companies to buy all the competition and becomes the only provider of the commodity in question (e.g Microsoft)
Means then can charge what they like and consumers what they like and consumers are at their mercy for quality, after-care etc.