| A | B |
|---|
| Laissez Faire | The idea that government should not interfere or regulate business. It comes from the French phrase, “let do”. |
| Capitalism | An economic system based on private ownership and competition. |
| Wealth of Nations | A book written by Adam Smith that defended capitalism and free markets. |
| Utopia | A perfect living place or community where people shared everything in common. |
| Socialism | An economic system in which wealth is shared and factors of production operate for the benefit of all. |
| Communist Manifesto | A work written by Karl Marx that challenged capitalism and predicts revolution. |
| Proletariat | This is Karl Marx’s term for the working class or “have nots”. |
| Bourgeoisie | This is Karl Marx’s term for the middle class employers or “haves”. |
| Communism | An economic system in which all businesses are owned in common and private property ceases to exist. It is the final stage of socialism. |
| Invisible Hand | Adam Smith’s belief that that marketplace would provide direction without government intervention. |
