Chapter 19 Section review 3

Gross National Product

the total output of goods and services

free trade

trade without government interference

philanthropy

the love of mankind or charity

Who wrote "The Wealth of Nations"? In what year was it written? What philosophy did it espouse?

Adam Smith. 1776. Individual freedoms in economics leads to the greatest good not only for the individual but for society as a whole.

Define capitalism. Why is it also called free enterprise? Why is free enterprise capitalism necessary for a nation to be free?

Capitalism is an economic system in which there is private ownership of the means of production, investments are determined by private decision rather than by the state, and prices, production, and the distribution of goods are determined mainly in a free market rather than by state control. Because it leaves the individual free to make something of himself if he has the enterprise to do it. Because its people accept the responsibility for their own welfare.

Name three great business leaders during the Age of Industry. What were some of the benefits they and other "captains of industry" brought to mankind?

John D Rockefeller, Andrew Carnegie and J. P. Morgan Each of them helped to provide the world with much needed commodities to help create a better, safer, and more enjoyable living conditoins for mankind. They also used there accumulated wealth for philanthropy

What was capitalism most bountiful in America? Name two events that demonstrated the United States' new role as a world power.

since america had a unique blend-a people of high moral character with a will to work to the greatest degree of individual responsibliy and freedom the world has yet seen and in abundance of the other ingredients necessary for industrialization. Spanish American War, Panama Canal