Free Enterprise System Glossary

1. Global Free Enterprise Center MENU Free Enterprise System Glossary Capitalist: someone who owns and/or starts a business Collectivism: belief in the focus on improvement of society as a whole, as opposed to focusing on freeing individuals to perform to the best of their abilities Competition: allowing individuals to try to produce the best good or service Communism: authoritarian, collectivist economic system based on property being held collectively i.e. in common Cooperation: partnering that allows individuals to leverage their abilities Crony Capitalism: an economic system that uses government intervention, through subsidies, bailouts, and special favors, to try to help businesses Depression: deep, prolonged drop in economic output characterized by high unemployment, frequent bankruptcies, and financial instability Embargo: ban on purchasing goods and services from another country- trade restriction Equality: 1. Of opportunity: allowing individuals to pursue success and prosperity to the best of their

2. abilities, free from discrimination, exploitation, and force of any kind 2. Of results: redistributing the wealth created by producers to society as a whole Fascism: an economic/ political system that uses government intervention to try to help the state Financial Institution: allocates capital to capitalists, investors, government, laborers Fiscal Policy: stabilization of economy using government budget, helps to create positive business environment Freedom: 1. Of Production: right to produce according to one’s will and abilities 2. Of Ownership: right to claim rewards for producing 3. Of Exchange: right to buy and sell what one desires if one has the means to do so 4. Of Thought: right to be able to create and improve ideas and then share them through speech, religion, press, peaceful assembly, petition Free Enterprise: system based on individual freedoms to produce, own, exchange, and think- most effective economic system Synonyms: capitalism, free market, private enterprise Free Trade: the unrestricted purchase and sale of goods and services between nations Globalization: increasing trade between nations Government: necessary part of free enterprise, basic role is to provide a stable environment for individuals to be able to live without being subject to force Individualism: belief in the ability of the individual and his or her right to exercise that ability Investor: someone who allocates capital to a business, financial institution, government Laborer: someone who works for a business, financial institution, government Monetary Policy: stabilization of economy through control of interest rates and government bond trading Money: any medium of exchange and store of value 1. Commodity Currency: money with value derived from some tangible resource e.g. cattle 2. Representative Currency: money with value backed by some tangible resource e.g. Gold Standard 3. Fiat Currency: money with value derived from the authority of the government as well as the laws of supply and demand 4. Cryptocurrency: decentralized money stored and exchanged digitally with value created by the laws of supply and demand

3. Cryptocurrency, or money held in electronic form, is the newest type of currency. Monopoly: an entity with complete control over the sale of a good or service, obstructs the free market Monopsony: an entity with complete control over the purchase of a good or service, obstructs the free market Oligopoly: same as monopoly except that there are several entities instead of one Oligopsony: same as monopsony except that there are several entities instead of one Protectionism: the use of trade restrictions to try to defend one or more domestic industries, harmful over the long run Quota: limit on the purchase of a specific good or service from a foreign country- trade restriction Regulation: rules to keep economy working properly, part of free enterprise Self-interest: the desire to increase one’s wealth by producing more to sell to others Socialism: system that uses government intervention to try to help society as a whole i.e. collectively Subsidy: payment given to people using government funds to allow prices to lower- trade restriction

4. Taxation: money individuals pay to government to provide public goods and services Share this: More     CONTENT Free Enterprise System Definition and Characteristics “Free enterprise system definition: an economic system that grants individuals the freedom to…” How the Free Enterprise System Works “Free enterprise is a beautiful system built on freedom that…” Freedom of Production “The freedom to produce allows individuals to create value…” Freedom of Ownership “Individuals are free to own property.” Freedom of Exchange “All exchange requires the consent of all parties involved.” Freedom of Thought “This freedom spawns new technologies and processes…” Laborers “Laborers, or workers, are a necessary part of every…” Capitalists “Capitalists… start, own, and expand businesses.” Financial Institutions “This groups includes banks, asset management firms, insurance companies, and more.” Investors “Investors supply the economy with capital.” Government “Government is necessary for the free enterprise system.” Crony Capitalism “Crony capitalism occurs when the success of a business is determined by relationships with

5. politicians…” Communism “This economic system has failed in just about every single country it has been implemented in.” Free Trade “Free trade is the practice of allowing individuals to exchange goods and services, without restriction or manipulation, across international borders.” Progress “Sustainable economic progress is the result of a cycle between technology and investment.” Free Enterprise System Glossary PURPOSE The purpose of Global Free Enterprise Center is to support the free enterprise system and educate individuals on what it is, how it works, and why it works. LISTED DIRECTORIES Web Directory India Add URL Web Directory India Other Listed Directories Home About Contact Global Free Enterprise Center Blog at WordPress.com.