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Socialism
Government ownership of some factors of production and distribution of products and wages.
Capitalism
Economic system based on private ownership of factors of production and market competition.
Laissez-faire economics
Government should stay out of the market place except to ensure competition.
The Invisible Hand
Belief that individuals should work for their own self-interest and be guided by an "invisible hand" to use resources efficiently.
Private property
The right to own and use property as we choose within legal limits.
Profit incentive
The driving force of capitalism, the ability to accumulate wealth.
Competition
The struggle between buyers and sellers to get the best products at the lowest price.
Productivity
The amount of output that can be produced by a set amount of resources in a given period of time.
Specialization
When people, businesses, or countries focus on what they can do best.
Division of Labor
Breaking down a job into small parts performed by different workers.
Investing in Human Capital
Spending to improve worker skills.
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