| A | B |
|---|
| Industrial Revolution | The shift, beginning in England during the 18th century, from making goods by hand to making them by machine |
| Enclosure | One of the fenced-in or hedged-in fields created by wealthy British landowners on land that was formerly worked by village farmers; used by large landowners to experiment with new farming techniques |
| Crop rotation | The system of growing a different crop in a field each year to preserve the fertility of the land; greatly improved the efficiency of farming |
| Industrialization | The development of machine producing industries |
| Factors of production | The resources - including land, labor, and capital - that are needed to produce goods and services |
| Factory | A large building in which machinery is used to manufacture goods |
| Entrepreneur | A person who organizes, manages, and takes on the risks of a business |
| Urbanization | The growth of cities and the migration of people into them |
| Middle class | During the 1800s, a newly wealthy social class made up of skilled workers, professionals, businesspeople, and wealthy farmers |
| Corporation | A business owned by stockholders who share in its profits but are not personally responsible for its debts |
| laissez faire | The idea that government should not interfere with or regulate industries and businesses |
| Adam Smith | In his 1776 book, The Wealth of Nations, he defended the idea of a free economy, claimed that government need not interfere in the economy |
| Capitalism | An economic system based on private ownership and on the investment of money in business ventures in order to make a profit |
| Utilitarianism | The theory, proposed by Jeremy Bentham in the late 1700s, that government actions are useful only if they promote the greatest good for the greatest number of people; sought to distribute wealth more equally |
| Socialism | An economic system in which the factors of production (i.e. businesses) are owned and regulated by the government and operate for the welfare of all |
| Karl Marx | Co-wrote The Communist Manifesto where he talked about class struggle; predicted that the workers would overthrow the business owners bringing about economic equality for all people; believed that the capitalist system which produced the Industrial Revolution would eventually destroy itself and eventually a classless society would develop ("pure communism") |
| Communism | An economic system in which all means of production - land, mines, factories, railroads, and businesses - are owned by the people, private property does not exist, and all goods and services are shared equally |
| Union | An association of workers, formed to bargain for better working conditions and higher wages |
| Collective bargaining | Negotiations between workers (i.e. unions) and their employers |
| Strike | To refuse to work in order to force an employer to meet certain demands of the workers |
