Modern World History-Chapter 9

Modern World History-Chapter 9

Adam Smith
a professor at the University of Glasgow, Scotland, defended the idea of a free economy, or free markets
Capitalism
an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit
Communism
a form of complete socialism in which the means of production—all land, mines, factories, railroads, and businesses—would be owned by the people
Corporation
a business owned by stockholders who share in its profits but are not personally responsible for its debts
Crop rotation
a farmer might plant a field seed, which exhausted soil nutrients. The next year they plant another crop to restore nutrients
Enclosure
Enclosure
large land fields enclosed by fences or hedges
Entrepreneur
a person who organizes, manages, and takes on the risks of a business
Factors of production
– the resources needed to produce goods and services that the Industrial Revolution required
Industrial Revolution
the greatly increased output of machine-made goods that began in England in the middle 1700s
Industrialization
the process of developing machine production of goods, required such resources
Karl Marx
a German journalist that argued that human societies have always been divided into warring classes
Laissez faire
the economic policy of letting owners of industry and business set working conditions without interference
Middle class
a social class made up of skilled workers, professionals, businesspeople, and wealthy farmers
Moses Brown
opened the first factory in the United States to house Slater’s machines in Pawtucket, Rhode Island
Socialism
the factors of production are owned by the public and operate for the welfare of all
Stock
certain rights of ownership
Strike
refusing to work
Union
workers joined together in voluntary labor associations to press for reforms
Urbanization
city building and the movement of people to cities
Utilitarianism
theory, people should judge ideas, institutions, and actions on the basis of their utility, or usefulness