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Flashcards in Capitalism Deck (10)
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1
Q

freedom of enterprise

A

people are free to choose how they spend their time and resources

2
Q

self interest

A

people act in their own best interest

3
Q

private property

A

you own and control what you buy; the means of production are owned by private individuals and businesses

4
Q

free markets

A

supply and demand correct themselves without government intervention

5
Q

limited government

A

government intervenes in the market only when necessary for the good of the people

6
Q

adam smith

A

the “invisible hand” - the power of the market to correct itself

7
Q

if a rancher prevents a thief from taking his cattle

A

private property

8
Q

owns and controls property, businesses, investments and income

A

private citizens

9
Q

ability to better oneself without govt. interference

A

personal self-interest

10
Q

note

A
  • we have private property but not limited government
  • other economic systems do not allow private ownership
  • Cuba
  • society always maximizes its economic surplus and opportunity
  • governments should never set prices