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Flashcards in Economic system defs Deck (25)
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1

capitalism

economic system in which individuals are free to own the means of production and maximize profits

2

land (factor of production)

from the land we can take its natural resources

3

capital (factor of production)

all human produced goods and services (building,computers)

4

human capital (factor of production)

knowledge (college)

5

labor (factors of production)

people need to work; land and capital often provides labor

6

entrepreneur

an individual with the drive and ambition to combine land, labor, and capital resources to produce goods or offer services

7

free enterprise system

an economic system characterized by private ownership of capital and by investments that are determined by private decisions, not by the government

8

free market

a market in which buyers and sellers are free to buy and sell what they want

9

supply

quantity of good or services available at range of prices

10

demand

buyers desire to buy a good or service

11

monopoly

a company that is the only source of a product or service

12

trust

when several corporations in the same line of business work together to eliminate competition from the market and regulate prices

13

Sherman Anti-Trust Act

prohibits every type of trust on conspiracy of trade or commence

14

bourgeoisie

capitalists

15

proletariat

workers

16

classless society

equality

17

nationalization

when the government takes over all privately owned industries

18

welfare state

a country that provides social services at little or no direct cost

19

command economy

government bureaucrats plan for the development of the economy over a period of years (green new deal)

20

communist party

everyone in the country is a part if the Communist party

21

central planning

the communist government will control and supervise all parts of the economy

22

collectivization

the government owns all property and all means of production

23

state ownership

all parts of the economy are owned and controlled by the government (transportation, hospitals, banks)

24

glasnost

openness

25

perestroika

restructuring