Studied by 12 people
Gross national product (GNP)
The total value of all goods and services produced by a country
Laissez Faire
Literally means “let do” believes that the government should not interfere in the economy other than to protect private property rights and maintain peace
Entrepreneurs
People who risk their capital in organizing and running a business
Time zone
The American Railway Association divided the country into four time zones in regions where the same time was kept
Land Grants
money given to encourage the building of railroads
Corporation
An organization owned by many people but treated buy law as though it were a single person
Economies of scale
Corporations make their good more cheaply because they produce so much so quickly using large manufacturing facilities
Fixed costs
Costs a company has to pay, wether or not its operating
Operating costs
Costs that occur when running a company
Pools
Agreements to maintain prices at a certain level
Horizontal integration
Combining many firms engaged in the same type of business into one large corporation
Monopoly
When a single company achieves control of an entire market
Vertical integration
Owns all of the different businesses on which it depends for its operation
Trust
A new way of merging businesses that did not violate the laws against owning other companies
Holding company
A holding company does not produce anything itself, instead owns stock of companies that do produce goods
Deflation
A rise in the value of money
Trade Unions
Unions limited to people with specific skills
Industrial Unions
united all craft workers and common laborers in a particular industry
Lockout
Locking workers out of property and refusing to pay them
Marxism
argues that the basic force shaping capitalist society was the class struggle between workers and owners. Believed that workers would revolt and overthrow government
Arbitration
a process in which an impartial third party helps workers and management reach an agreement
Closed Shops
Companies could only hire union members
Note
Flashcard