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Industrial Revolutio

TermDefinition
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
Created by: dclancy
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