entrepreneur—literally, an “enterpriser”—is an individual with the drive and ambition to combine land, labor, and capital resources to produce goods or offer services, and is willing to risk losses and failure.
an economy relying on market forces to allocate resources
Capitalism is often referred to as a
free enterprise system, which is an economic system characterized by private ownership of capital and by investments that are determined by private decision, not by public authorities.
a doctrine that government should not interfere in commerce
Laissez-faire theory holds that government should play only a very limited, hands off role in society, confined to: (1) foreign relations and national defense, (2) the maintenance of police and courts to protect private property and the health, safety, and morals of the people, and (3) those few other functions that cannot be performed by private enterprise at a profit.
a theory favoring collectivism in a classless society
The father of modern socialism and
communism, Karl Marx (1818–1883) was the most significant critic of capitalism as it developed during the early Industrial Revolution. He envisioned a society where social classes would vanish and the people would own all property in common.
Fiscal policy is a major tool with which both the executive and legislative branches of the Federal Government seek to achieve broad economic goals.
Fiscal policy consists of the government’s powers to tax and spend to influence the economy.