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35 Cards in this Set
- Front
- Back
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Economic system in which private businesses run most industries, and competition determines how much goods cost and workers are paid.
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Capitalism
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Belief that the economy will prosper if businesses are left free from government regulation and allowed to compete in a free market.
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Free enterprise
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Political theory that proposes individual ownership should not be allowed, but rather all people should collectively own property and the means of productions.
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Communism
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Theory adapted by philosopher Herbert Spencer from Charles Darwin's theory of evolution; argued that society progressed through competition with the fittest rising to positions of wealth and power.
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Social Darwinism
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Company that sells shares of ownership called stock to investors in order to raise money.
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Corporation
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Arrangement grouping several companies under one board of directors to eliminate competition and to regulate production.
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Trust
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Exclusive economic control of an industry.
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Monopoly
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Ownership of businesses involved in each step of a manufacturing process.
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Vertical integration
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Ownership of several companies making the same product.
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Horizontal integration
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What led many leaders to support the idea of laissez-faire capitalism?
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A high regard for self-reliance
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What does laissez-faire mean?
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To let people do as they choose
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What does the theory of laissez-faire capitalism call for?
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No government intervention in the economy.
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In a free-market economy what determines what and how much businesses produce?
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Supply, demand, and profit margin
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What did some critics argue was harmful and unjust to the working class?
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The rapid industrialization of factory life
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Who proposed a political system that would remove the inequalities of wealth?
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Karl Marx
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Marx's political theory called for the overthrow of what?
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The capitalist economic system
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Who is the bourgeoisie?
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The people who own the means of production
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Who is the proletariat?
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The workers
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Some religious leaders offered religious support for social Darwinism by suggesting great wealth was a sign of what?
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Christian virtue
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Since small businesses could not manage or raise money needed to fund large industries, they turned to what other form of business organization?
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The corporation
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The practice of trustees running all of the companies as a single enterprise _______________ by reducing ________.
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limits overproduction; competition
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A company with a monopoly has almost complete control over what two things of a product?
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The price and quality
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Who was the steel leader that was a master at utilizing new business strategies?
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Andrew Carnegie
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Carnegie's real success, however, lay in reducing ________ costs.
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production
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What practice of buying did he use to control costs?
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He bought supplies in bulk and produced goods in large quantities
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What is this called?
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Economics of scale
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What other practice did he use to control costs?
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Vertical integration
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What is the idea that the rich were morally obligated to manage their wealth in a way that benefitted their fellow citizens called?
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The Gospel of Wealth
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What company did John D. Rockefeller own?
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Standard Oil Company
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How did he drive his competitors out of business?
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He made deals with suppliers and transporters to recieve cheaper supplies and freight rates.
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Who was a pioneer of railroad industry?
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Cornelius Vanderbilt
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How did he take advantage of the growing demand for rail transportation?
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He provided more efficient service
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How did George Westinghouse make his fortune?
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In the railroad industry by inventing the air brake.
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What type of railroad car did George Pullman make?
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Cars that made long-distance rail travel more comfortable.
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What were three ways that companies persuaded customers to use their products?
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Brand names, advertising, and packaging
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