Module 2 Flashcards
competition
in terms of economics, the concept that those who produce and sell goods compete with one another for consumer dollars
direct democracy
a governmental system in which all eligible citizens vote directly on issues before the government
divine right of kings
the theory that absolute monarchs held power because God chose them to rule
economic freedom
the concept that individuals should be able to own property and produce and sell goods with minimal interference from government
free market system
an economic system in which individuals are free to own property, produce goods, and buy or sell goods and services with little or no government interference
Other words used to describe the free market system include capitalism, the market system, free enterprise, and private enterprise.
individual rights and freedoms
the universally accepted or legally granted power of the individual to engage in certain activities and to exercise certain privileges
invisible hand
in economics, the concept that individual self-interest and competition will regulate the economy
laissez-faire
an economic theory or system that advocates little or no government interference in the economic affairs of the people
mercantilism
an economic system characterized by efforts to restrict trade between nations, to regulate economic activity, and to accumulate gold bullion in the national treasury
natural rights
universal rights deemed to be automatically granted to all humans at birth
oligarchy
a governmental system in which power is concentrated in the hands of a small group of unelected people
physiocrats
eighteenth-century French economists who advocated free trade and limited government involvement in the economy
private property
property that is owned by individuals or groups of individuals as opposed to being owned by the government
rule of law
the concept that all individuals, regardless of wealth, social status, or political power, are equally subject to the law
self-interest
the economic or political advancement of the individual as opposed to the group or society
