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Industrial Revolutio
| Term | Definition |
|---|---|
| Industrial Revolution | goods began to be produced by machine instead of by hand |
| free enterprise | an economic system made up of the free actions of producers and consumers |
| law of supply and demand | demand is high, prices are high demand is low, prices are low |
| profit | extra money that is made after all expenses have been paid |
| laissez-faire | "hands off" government policy |
| Adam Smith | "invisible hand" and laissez-faire policy |
| mass production | large-scale production of identical goods |
| spinning jenny | allowed many threads to be spun at a time |
| steam engine | a machine run by using hot steam |
| James Watt | invented the steam engine |
| invisible hand | guides individual actions so that they work for the common good |
| cottage system | economic system where goods are produced by hand in private homes |
| urbanization | growth in size and population of cities |
| capitalism | a system in which a country's trade and industry are controlled by private owners for profit |
| Louis Pasteur | believed most diseases were caused by germs |
| consumers | those who buy and use goods and services |
| producers | those who make and sell goods and services |
| factories | places where large numbers of people work on machines |
| unions | organized group of workers formed to protect their rights and interests |
| Karl Marx | critic of capitalism; believed workers would eventually overthrow their bosses, became basis of communism |
| communism | political theory in which all property is publicly owned and each person works and is paid according to their abilities and needs |
| socialism | movement that believes that production and distribution of goods is controlled by the government |
| law of supply and demand | determines prices and what goods are produced |
| basic economic questions | what will be produced, how should it be produced, and who should it be produced for |