Pg.558 #1. Pg.563 # 1&2

Pg. 558:

1. Capitalism: an economic system in which individuals or corporations, control the factors of production instead of the government

commercial capitalism: before the industrial revolution when most capitalists were merchants who bought and sold goods

industrial capitalism: during the industrial revolution when capitalists became more involved in producing and manufacturing goods

interchangeable parts: identical parts that resulted in speedy production of inexpensive muskets that could be easily repaired

mass production: the system of producing large numbers of identical items at a time.

Corporations: business formed groups allowed people to buy stock in their companies

Monopoly: when a corporation gained almost complete control of the production or sale of a single good or service.

Cartels: when several giant corporations combined to control every stage of entire industries

business cycle: the industrial revolution brought alternating periods of prosperity and decline

Depression: when factories closed and laid of workers who, with less money to buy goods, further reduced demand

Pg.563:

1. free enterprise: Adam Smith’s systems that argued that mercantilist laws and regulations hindered natural economic forces

laissez-faire: means to (let it be) or (leave it alone); Smith said for the government not to get involved

Humanitarians: people who work to improve the conditions of others

Utilitarianism: put forth by philosopher Jeremy Bentham; argued that a law was useful and therefore good it led to the greatest happiness of the greatest number of people

Strike: when a large group of workers stop working

Unions: associations formed by the workers to have more organized protests

collective bargaining: process of negotiation that had agreements that were written into contracts lasting for a fixed period of time

2. Adam Smith: Scottish economist that accepted some of the ideas of the physiocrats; states in his book, The Wealth of Nations, his views on why England started the industrial revolution

Thomas Malthus: an Anglican clergyman who became a professor of economics; he wrote that the population increases present the greatest obstacle to human progress

David Ricardo: wrote that working-class poverty is inevitable

Charles Dickens: used his novels to attack greedy employers.

Jeremy Bentham: believed that people should be educated so that they could decide what things were good for them or would make them happy

John Stuart Mill: also believed that a government should work for the good of all its citizens