Unit 4 level 1

Capitalism

an economic system in which factories, equipment, and other means of production are privately owned rather than controlled by government

Bessemer Process

a method of steelmaking invented in 1855 that enabled steel to be made more cheaply and quickly

Factors of production

land, labor, and capital

Capital

any financial asset-including money, machines, and buildings-used in production

Monopoly

a company that completely dominates a particular industry

Trust

a set of companies managed by a small group known as trustees, who can prevent companies in the trust from competing with each other

Corporation

a company recognized by law to exist independently from its owners, with the ability to own property, borrow money, sue, or be sued

Horizontal Integration

a corporate expansion strategy that involves joining together as many firms from the same industry as possible

Vertical Integration

a corporate expansion strategy that involves controlling each step in the production and distribution of a product, from acquiring raw materials to manufacturing, packaging, and shipping

Laissez-faire

the idea that the free market, through supply and demand, will regulate itself if government does not interfere

Social Darwinism

an idea, based on Charles Darwin's theory of evolution, that the best-run businesses led by the most capable people will survive and prosper

Sherman Anti-trust Act

an 1890 federal law that outlawed trusts, monopolies, and other forms of business that restricted trade

Enrepeneurs

a bold, ambitious person who establishes a new business

Philanthropist

a person who gives money to support worthy causes