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Civics 1.4

Economic Theories

termdefinition
economics study of how people try to satisfy their wants with limited resources
capitalism economic system with free choice and individual incentives
free market buyers and sellers make free choices in the marketplace
laissez-faire philosophy that gov't should keep its hands off the economy
socialism gov't owns basic means of production and provides social services
bourgeoisie capitalists who own the means of production
proletariat workers who produce goods
communism economic system in which the gov't makes all major economic decisions
command economy economic system in which gov't controls all factors of production
democratic socialism people control the gov't through free elections but gov't owns basic means of production and makes most economic decisions
Created by: phersont
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