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Flashcards in Chapter 6 Terms Deck (16):
1

An economic philosophy commonly held in Europe from the sixteenth to the eighteenth centuries that advocated the accumulation of gold and silver as national wealth

Mecantilism

2

The condition experienced when a nation sells more goods abroad than it purchases from foreign nations

Favorable Balance of Trade

3

The idea that the government should generally leave the economy of a nation alone and allow the people to seek their own profit

Laissez-Faire

4

An economic system in which private individuals own most of the factors of production and make most economic decisions

Capitalism

5

An economic system in which a central authority, committee, or the people in common generally own the factors of production and make economic decisions

Socialism

6

The most extreme form of capitalism in which private citizens own all factors of production and make all economic decisions

Radical Capitalism

7

The form of capitalism allowing the government only minimal ownership of resources and decision-making power

Classic Liberal Capitalism

8

Needed goods that private firms cannot create at a profit

Public Goods

9

A form of capitalism in which the vast majority of the factors of production are owned by private citizens but the government intervenes widely in economic decisions to ensure that egalitarian goals are carried out

State Capitalism

10

A nation under extreme state capitalism in which high taxes are used to provide wide social programs

Welfare State

11

A transitional economic system bridg­ing the gap between capitalism and socialism with the pre­dominant characteristic of the state’s taking possession of those industries that are the cornerstones of the economy

Social Democracy

12

The government’s acquisition of the ownership of major industries

Nationalization

13

The government’s selling of nationalized businesses back to private owners

Privatization

14

In his __________ __________, Marx argued that any arrangement of the tools of production short of total state ownership would be counterproductive.

Communist Manifesto

15

The economic sense, the most extreme form of socialism, in which all individuals voluntarily contribute their labor for the good of the society while taking from the economy only the goods and services that they truly need

Communism

16

A form of socialism in which the government is both the central owner and the decision maker in all economic affairs of the state

Centralized Socialism