CH 6 Modern Economic Systems

form of capitalism allowing the government only minimal ownership of resources and decisions

classless society, individuals take only what they need & contribute the rest

accumulation of gold and silver as national wealth, created by a favorable balance of trade

state's taking possession of those industries that are the cornerstones of the economy

nation under extreme state capitalism, taxes widely used for social programs

the government's acquisition of the ownership of major industries

Author of Wealth of Nations, advocate of the invisible hand.

extreme capitalism-private citizens own all factors of production/make all economic decisions

idea that the gov't should leave the economy alone and allow the people to seek own profit

private individuals own most of the factors of production/make most economic decisions

form of socialism: government is the central owner/decision maker for the state

condition experienced when a nation sells more goods than it purchases from foreign nations

pamphlet written in 1848 by Karl Marx & F Engels, summarizing their theory.

majority of ownership/decision-making with indiv. but gov't intervenes for egalitarian goals