| A | B |
|---|
| Factors of Production | Basic resoucres used to make all goods and services |
| Capital | All the human-made resources that are used to produce goods and services |
| Capitalist | Someone who owns capital and puts it to productive use |
| Entrepreneur | An individual with the drive and ambition to combine land, labor, and capital resources to produce goods or offer services |
| Free Enterprise System | Economic system characterized by private or corporate ownership of capital goods and investments that are determined by private decision rather than by state control |
| Laws of Supply and Demand | Supplies are plentiful, prices drop; supplies scarce, prices increase |
| Monopoly | A firm that is the only source of a product or service |
| Trust | A device by which several corporations in the same line of business combine to eliminate competition and regulate prices |
| Laissez-Faire Theory | Government should play a very limited role in society |
| Socialism | An economic and political philosophy based on the idea that the benefits of economic activity whould be equitably distributed throughout society |
| Proletariat | Workers |
| Bourgeoisie | Capitalists |
| Welfare States | Countries that provice extensive social services at little or no cost to the users |
| Market Economy | Another name for a capitalist economy |
| Centrally Planned Economy | Government bureaucrats plan how an economy will develop over a period of years |
| Communism | Calls for the collective ownership of of land and other productive property |
| Five-Year Plan | Plan that shows how leaders want their country developed in the next five years |
| Collectivization | Merge of small industries into large enterprises |
| Gosplan | Centralized agency run by a large agency |
| Privitization | The process of returning nationalized enterprises to private ownerships |
| Great Leap Forward | Attempt to modernize China quickly |
| Commune | Smaller units combined into a bigger unit |
