OC - WH - Capitalism Key Terms

What is a free market?

• An economic system where prices are determined by the government

• An economic system where prices are determined by consumers

• An economic system where prices are determined by supply and demand

• An economic system where prices are determined by competition

What does private property refer to?

• Ownership of assets by individuals or non-governmental entities

• Ownership of assets by the government

• Ownership of assets by corporations

• Ownership of assets by foreign entities

What is the profit motive?

• The intent to achieve social gain in a transaction

• The intent to achieve monetary gain in a transaction

• The intent to achieve political gain in a transaction

• The intent to achieve environmental gain in a transaction

What is consumer sovereignty?

• Consumers have the power to determine government policies

• Consumers have the power to determine business regulations

• Consumers have the power to determine what products are produced

• Consumers have the power to determine the price of goods and services

What is competition?

• The collaboration between businesses to sell goods and services

• The existence of a single business in the market

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

• The existence of multiple businesses attempting to sell different goods or services

What is entrepreneurship?

• The process of starting and running a new business

• The process of managing an existing business

• The process of investing in established businesses

• The process of regulating business activities

What is capital accumulation?

• The growth of government assets

• The growth of individual assets

• The growth of corporate assets

• The growth of capital assets used to produce goods and services

What is deregulation?

• The process of increasing state interventions in economic matters

• The process of reducing state interventions in economic matters

• The process of eliminating all state interventions in economic matters

• The process of transferring state interventions to non-governmental entities

What is supply and demand?

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

• The fundamental economic principle that determines the quantity of goods and services

• The fundamental economic principle that determines the quality of goods and services

• The fundamental economic principle that determines the distribution of goods and services

What is laissez-faire?

• A policy of government intervention in economic matters

• A policy of government control over all economic activities

• A policy of government ownership of all resources

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