Term
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Definition
| basic resources which are used to make all goods and services |
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Term
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Definition
all the human-made resources that are used to produce goods and services
Physical capital/capital goods include money, buildings, machines, computers, workers,
Human capital-knowledge workers gain from experience
capital is a product of economy, and is reinvested into the economy |
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Term
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Definition
one who owns capital and puts it to productive use
-applied most often to large business or factory owners, but is applicable to smaller investors as well
-U.S. called capitalist b/c depends on energy/drive of many individual capitalists |
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Term
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Definition
an individual with the drive/ambition to combine land, labor, and capital to produce goods or offer services
-they start/grow businesses, providing for high standard of living in capitalistic societies |
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Term
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Definition
economic system characterized by private or corporate ownership of capital/physical goods and investments that are determined by private decision vs. state control
-capitalism is an example of this
-this style operates in a free market |
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Term
| Laws of Supply and Demand |
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Definition
they state: when supply is plentiful, prices drop
if supplies are scarce, prices rise
if demand drops, prices drop
if demand rises, prices rise |
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Term
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Definition
| a situation in which a number of companies offer the same product or service |
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Term
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Definition
company that is the only source of a product or service
-in 2000 Microsoft was sued by the Department of Justice for violating Sherman Anti-Trust Laws, which protect against monopolies |
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Term
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Definition
type of monopoly in which several corporations in the same line of business combine to eliminate competition and regulate prices
-Sherman Anti-Trust Act of 1890 prohibits "every contract, combination in the form of a trust or otherwise, or conspiracy in restraint of trade or commerce among several States, or with foreign nations |
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Term
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Definition
idea that government should hold a very limited role in society
-should be confined to foreign relations/national defense, maintenance of police and courts to protect private property and the health, safety, and morals of the people, and other functions which cannot be performed by private enterprise at a profit |
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