Capitalism
Definition
Capitalism is an economic system where private entities own the factors of production. The four factors are entrepreneurship, capital goods, natural resources, and labor.
Analogy
Imagine you're playing a game of Monopoly. In this game (just like in capitalism), players privately own properties (factors of production) and aim for profit maximization through strategic transactions.
Related terms
Free Market Economy: An economic system based on supply and demand with little or no government control.
Private Property Rights: Legal designation for ownership rights over property; these rights enable individuals to benefit from their labor/effort/investment.
Profit Motive: The intent to achieve monetary gain in a transaction or material endeavor.
"Capitalism" appears in:
Study guides (6)
AP European History - 1.1 Context of the Renaissance
AP European History - 1.10 The Commercial Revolution
AP European History - 1.11 Causation in the Renaissance and Age of Discovery
AP European History - 6.2 The Spread of Industry Throughout Europe
AP European History - 9.3 The Cold War
AP European History - 9.15 Continuity and Change in the 20th and 21st Centuries
Practice Questions (12)
What was the impact of the Dutch Golden Age on the development of capitalism?
Who among the following philosophers argued that capitalism was inherently linked to slavery, thus underscoring the Marxist perspective on the slave trade?
How did the rise of capitalism affect social structures in Europe during this period?
Who penned 'The Commercial Revolution' detailing Europe's economic progress from feudal economies to capitalism?
Which system was replaced by capitalism during the Industrial Revolution in Europe?
Which is NOT a characteristic of capitalism?
Which group was primarily benefited from Europe's shift toward capitalism during the Industrial Revolution?
Who proposed social reform based on cooperative communities and challenged capitalism during this time period?
Which social theory emerged in response to capitalism during the industrial revolution advocating for communal ownership?
How did the development of capitalism during Industrial Revolution impact labor conditions according to Marxist analysis?
Which economic ideology emerged as an alternative to capitalism during the global economic crisis?
How did the Cold War's ideological contest between capitalism and communism echo earlier European philosophical debates?
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