Capitalism Terminology

5. The willingness to take risks and organize resources to create new businesses and innovations.
8. The tools, machines, factories, money, and resources used to produce goods and services.
9. The idea that individuals act in pursuit of their own personal gain.
10. The creation of new products, services, or methods of production that improve economic growth.
11. A market structure in which a single seller controls the supply of a good or service.
12. The right of individuals to own and control resources, land, and capital.

1. An economic system where prices and production are determined by voluntary exchange and competition, not central government control.
2. Smith’s metaphor describing how self-interest and competition guide markets to produce beneficial outcomes for society.
3. The market forces that determine the price and quantity of goods based on consumer desire and producer availability.
4. The rivalry among businesses to attract consumers by offering better prices, quality, or innovation.
6. The principle that government should interfere as little as possible in economic affairs.
7. The incentive that drives individuals and businesses to produce goods and services in order to earn financial gain.