Chapter 23 Flashcards
(20 cards)
All human made resources that are used to produce goods
Capital
Someone who owns capital and puts it to productive use, often applied to people who own large businesses
Capitalist
An individual with the drive and ambition to combine land, labor, and capital to produce goods or other services
Entrepreneurs
An economic system characterized by private or corporate ownership of capital goods; investments that are determined by private decisions rather than by state controls and determined a free market
Free enterprise system
A law which states that when supplies of goods and services become plentiful, prices tend to drop when supplies become scarce prices tend to rise
Law of supply and demand
A firm that is only a source of a product or service
Monopoly
A device by which several corporations in the same business work to eliminate competition and regulate prices
Trust
A theory by which suggests that government should play very limited role in society
Laissez fair theory
A philosophy based on the idea that the benefits of economic activity should be fairly distributed
Socialism
The social class between the aristocracy and the proletariat class aka the middle class
Bourgeoisie
Countries that provide extreme social services at little or no cost
Welfare state
Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange of money
Market economy
A system in which calls for the collective or state ownership of land and other productive property
Centrally planned economy
An ideology which calls for the collective or state ownership of land and other productive property
Communism
A plan which projects economic development over the years
Five year plan
Collective or state ownership of the means of production
Collectivization
A large agency in the Soviet Union introduced by Stalin to run centralized planning
Gosplan
The process of returning national enterprises to private ownership
Privatization
The five year plan for 1958 which was an attempt to quickly modernize China
The great leap
Basic resources which are used to make all goods and services
Factors of production
