Economic Systems and Their Influence

Flashcards covering key terms and concepts related to economic systems, capitalism, socialism, and their impacts.

Capitalism

An economic system where the means of production are predominantly held in private hands, and the main incentive is to accumulate profits.

Socialism

An economic system where the means of production and distribution are collectively owned, aimed at meeting people's needs rather than accumulating profits.

Industrial Society

A society that depends on mechanization to produce goods and services, emerging from the Industrial Revolution.

Monopoly

A market structure where a single business firm controls the market, significantly limiting competition.

Laissez-faire

An economic philosophy advocating minimal governmental interference in the economy, allowing for self-regulation by businesses.

Informal Economy

Economic transactions that occur outside government regulation or measurement, including unreported money exchanges and illegal activities.

Adam Smith

An economist known for promoting the idea of laissez-faire capitalism and the benefits of free competition.

Mixed Economy

An economic system that incorporates elements from both capitalism and socialism, common in many contemporary societies.

Coltan

A mineral used in electronic circuit boards, whose mining has been associated with serious ethical and environmental issues.

Antitrust Legislation

Laws designed to prevent monopolies and promote competition in the marketplace.