Capitalism Facts Flashcardziz

Front

Who makes the decisions in a capitalist economy?

Back

The People or Citizens (You and Me)

Front

What is a fundamental idea of laissez-faire capitalism?

Back

Businesses should gain and lose according to their own effort.

Front

What does a sale on winter coats in June illustrate in terms of supply and demand?

Back

High supply, low demand.

Front

How are prices set in a capitalist economy?

Back

Prices are set by what people buy and sell.

Front

Who is the author of 'The Wealth of Nations' and a key figure in capitalism?

Back

Adam Smith.

Front

What is capitalism?

Back

An economic system where private individuals own and control property and businesses.

Front

What is the role of competition in a capitalist economy?

Back

Competition drives innovation and efficiency, leading to better products and services.

Front

Define 'laissez-faire'.

Back

A policy of minimal government intervention in economic affairs.

Front

What is the significance of supply and demand in capitalism?

Back

They determine the price and availability of goods and services.

Front

What is a market economy?

Back

An economic system where decisions are made based on supply and demand.