Economic system defs Flashcards Preview

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Flashcards in Economic system defs Deck (25)
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1
Q

capitalism

A

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

2
Q

land (factor of production)

A

from the land we can take its natural resources

3
Q

capital (factor of production)

A

all human produced goods and services (building,computers)

4
Q

human capital (factor of production)

A

knowledge (college)

5
Q

labor (factors of production)

A

people need to work; land and capital often provides labor

6
Q

entrepreneur

A

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

7
Q

free enterprise system

A

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

8
Q

free market

A

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

9
Q

supply

A

quantity of good or services available at range of prices

10
Q

demand

A

buyers desire to buy a good or service

11
Q

monopoly

A

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

12
Q

trust

A

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

13
Q

Sherman Anti-Trust Act

A

prohibits every type of trust on conspiracy of trade or commence

14
Q

bourgeoisie

A

capitalists

15
Q

proletariat

A

workers

16
Q

classless society

A

equality

17
Q

nationalization

A

when the government takes over all privately owned industries

18
Q

welfare state

A

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

19
Q

command economy

A

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

20
Q

communist party

A

everyone in the country is a part if the Communist party

21
Q

central planning

A

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

22
Q

collectivization

A

the government owns all property and all means of production

23
Q

state ownership

A

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

24
Q

glasnost

A

openness

25
Q

perestroika

A

restructuring