CH 25 Key Terms

Industrial Revolution

the shift, beginning in England during the 18th century, from making goods by hand tomaking them by machine

enclosure

one of the fenced-in or hedged-in fields creat-ed by wealthy British landowners on land that wasformerly worked by village farmers

crop rotation

the system of growing a different cropin a field each year to preserve the fertility of the land

industrialization

the development of industries for the machine production of goods

factors of production

the resources�including land,labor, and capital�that are needed to produce goods and services

factory

a large building in which machinery is used tomanufacture goods

entrepreneur

a person whoorganizes, manages, and takes on the risks of a business

urbanization

the growth of cities and the migration of people into them

middle class

a social class made up of skilled workers, professionals, businesspeople, and wealthy farmers

stock

certain rights of ownership

corporation

a business owned by stockholders whoshare in its profits but are not personally responsible for its debts

laissez faire

the idea that governmentshould not interfere with or regulate industries and businesses

Adam Smith

professor the defended a free economy

capitalism

an economic system based on private owner-ship and on the investment of money in business venturesin order to make a profit

utiliarianism

thetheory, proposed by Jeremy Bentham in the late 1700s,that government actions are useful only if they promotethe greatest good for the greatest number of people

socialism

an economic system in which the factors of production are owned by the public and operate for thewelfare of all

Karl Marx

German journalist

communism

an economic system in which all means of production�land, mines, factories, railroads, and busi-nesses�are owned by the people, private property doesnot exist, and all goods and services are shared equally

union

an association of workers, formed to bargain for better working conditions and higher wages

strike

to refuse to work in order to force an employer tomeet certain demands