pg. 558 #1
1. Capitalism- An economic system in which individuals or corporations, rather than governments, control the factors of production.
Commercial Capitalism- When most capitalists are merchants who bought and sold goods.
Industrial capitalism- When capitalist become more involved in producing and manufacturing goods.
Interchangeable parts- When unskilled workers could turn out identical.
mass production- The system of producing large numbers of identical items.
Corporations- business groups allowing people to buy stock in their companies.
Monopoly- When a corporation gained almost complete control of the production of sale of a single food of service.
Cartels- Combined control over every stage of entire industries.
Business Cycle- Alternating periods of prosperity and decline.
Depression- when an entire economy sinks.
pg. 563 #’s 1&2
1. Free enterprise- A system in which economic forces worked automatically and naturally.
Laissez-faire- Let it be.
Humanitarians- People who worked to improve the conditions of others.
Strike- When a large group of workers stop working.
Unions- associations that collect dues from members and then use that money to pay workers if they went on strike.
Collective bargaining- Arguments written into contracts lasting for a fixed period of time.
2. Adam Smith- Accepted some of the ideas of the Physiocrats.
Thomas Mathus- An angelic clergyman who became a professor of economics.
David Ricardo- British economic who wrote that working-class poverty is inevitable.
Charles Dickens- Used his novels to attack greedy employers.
Jeremy Bentham- put forth the theory of utilitarianism.
John Stuart Mill- an English philosopher who believed that a government should work for the good of all its citizens.