political ideologies and economic systems - Capitalism

Question 1

Private Property

Answer 1

Ownership of assets and resources by individuals and businesses, rather than by the state or collective.

Question 2

Market Economy

Answer 2

Economic system where goods and services are produced, distributed, and exchanged by individuals and businesses in a competitive market.

Question 3

Free Enterprise

Answer 3

Economic system characterized by private ownership of businesses and minimal government intervention in economic activities.

Question 4

Profit Motive

Answer 4

Driving force behind capitalist economies, where individuals and businesses seek to maximize their profits.

Question 5

Competition

Answer 5

Rivalry among businesses in a market economy, driving efficiency, innovation, and lower prices for consumers.

Question 6

Supply and Demand

Answer 6

Economic principle that describes the relationship between the availability of a product and the desire for that product among consumers.

Question 7

Invisible Hand

Answer 7

Concept introduced by Adam Smith, describing how self-interested behavior in a free market leads to positive outcomes for society as a whole.

Question 8

Laissez-Faire

Answer 8

Economic policy advocating for minimal government interference in the economy, allowing the free market to operate without regulation.

Question 9

Entrepreneurship

Answer 9

Activity of starting and running a business, often involving risk-taking and innovation.

Question 10

Economic Freedom

Answer 10

Ability of individuals and businesses to make their own economic choices without interference from the government.

Question 11

Wealth Accumulation

Answer 11

Process of acquiring assets, resources, and capital in a capitalist economy.

Question 12

Consumer Sovereignty

Answer 12

Principle that consumer preferences determine the production of goods and services in a market economy.

Question 13

Division of Labor

Answer 13

Specialization of tasks and roles within a society or economy, increasing efficiency and productivity.

Question 14

Economic Growth

Answer 14

Increase in the production and consumption of goods and services over time, a key goal of capitalist economies.

Question 15

Capital Accumulation

Answer 15

Process of acquiring and investing capital to generate wealth and economic growth.

Question 16

Stock Market

Answer 16

Exchange where stocks and other securities are bought and sold, facilitating investment and capital formation.

Question 17

Corporate Governance

Answer 17

System of rules, practices, and processes by which companies are directed and controlled.

Question 18

Globalization

Answer 18

Integration of economies and societies through international trade, investment, and technology transfer.

Question 19

Free Trade

Answer 19

Policy that advocates for unrestricted exchange of goods and services between countries, with minimal barriers such as tariffs or quotas.

Question 20

Economic Inequality

Answer 20

Disparity in the distribution of wealth and income within a society, a common feature of capitalist economies.

Question 21

Monopoly

Answer 21

Market situation where a single company or group controls the supply of a commodity, giving them significant market power.

Question 22

Market Failure

Answer 22

Situation where the allocation of goods and services by a free market is not efficient, leading to suboptimal outcomes.

Question 23

Externalities

Answer 23

Costs or benefits of economic activities that are not reflected in the prices of goods and services, affecting third parties.

Question 24

Consumerism

Answer 24

Emphasis on consumption and acquisition of goods and services as a primary source of individual and social identity.

Question 25

Corporate Social Responsibility

Answer 25

Idea that businesses have a responsibility to consider the impact of their actions on society, beyond profit-making.

Question 26

Financialization

Answer 26

Increasing role of financial markets and institutions in the economy, often at the expense of productive activities.

Question 27

Neoliberalism

Answer 27

Political and economic ideology advocating for free-market capitalism, deregulation, and privatization of public services.