World 9.5
Capitalism
Free Market System
Adam Smith
Wealth of Nations
Individuals
Individuals
Individuals
Individuals
Individuals
Supply & demand
Low price
High price
Profit
Laissez-faire
Capitalism vs. Communism
is an economic system based on supply & demand, private ownership and
motivated by profit
is another name for the above system
is the father of the above system
is the book written by Adam Smith describing capitalism
decide what will be produced in a free market system
decide how goods and services will be produced in a free market system
decide how goods and services will be distributed in a free market system
decide what goods and services they will buy in a free market system
decide how much they are willing to pay for goods and services in a free market
system
are the two elements that determine the price of goods and services in a free
market system
happens when supply is high and demand is low in a free market system
happens when supply is low and demand is high in a free market system
is the motive of both business and individuals in a free market system
is French term meaning “let alone” or “let be” and means the government will not
interfere in business in a free market system
Private property
Profit is motivation
Individuals can gain wealth
are three positive effects of capitalism
Some people are poor
Greed is good
Business abuse workers
are three negative effects of capitalism
Communism
Command Economy
Karl Marx
Communist Manifesto
Government
Government
Government
Government
Government
is an economic system where the government determines the answer to all key
economic questions
is another name for the above system
is the father of the above system
is the book written by Karl Marx & Frederick Engels describing communism
decides what will be produced in a command economy
decides how goods and services will be produced in a command economy
decides how goods and services will be distributed in a command economy
decides what goods and services consumers will buy in a command economy
decides the price of goods and services in a command economy.
Wealth redistributed
No Class system
Everything is shared
No reason to work hard
Individuals don’t matter
No choices in goods & services
Can’t get rich
are three positives effects of the communism
are four negatives effects of communism