OC - WH - Capitalism Key Terms

Front

What is a free market?

Back

An economic system where prices are determined by consumers

Front

What does private property refer to?

Back

Ownership of assets by individuals or non-governmental entities

Front

What is the profit motive?

Back

The intent to achieve monetary gain in a transaction

Front

What is consumer sovereignty?

Back

Consumers have the power to determine what products are produced

Front

What is competition?

Back

The existence of multiple businesses attempting to sell similar goods or services

Front

What is entrepreneurship?

Back

The process of starting and running a new business

Front

What is capital accumulation?

Back

The growth of capital assets used to produce goods and services

Front

Deregulation

Back

The process of reducing state interventions in economic matters

Front

What is supply and demand?

Back

The fundamental economic principle that determines the price of goods and services

Front

What is laissez-faire?

Back

A policy of letting things take their own course without government intervention