US History : Unit 2 Lesson 2 Key Terms

Market Economy

Market Economy

People are free to
buy and sell
goods and labor
on an open
market

Capitalism

Capitalism

An economic
system where all
the means of
production are
privately owned

Innovation

Innovation

Process of putting
new ideas and
methods into
practice

Bessemer Process

Bessemer Process

The process of
using air to clean
molten iron
before becoming
steel

Corporation

Corporation

a company
recognized in law
as a separate
person

Laissez-faire

Laissez-faire

policy where
government
interfers as little
as possible in
economy

Entrepreneur

Entrepreneur

a person who creates
and operates a
business and takes on
greater than normal
financial risks in order
to do so.

Vertical Integration

Vertical Integration

total control over all
stages of production
and distribution

Horizontal Integration

Horizontal Integration

control of all
companies and
facilities at one stage of
production

Trusts

Trusts

An industrial organization
in which the voting rights
of a controlling number of
shares of competing
firms were held by a
small group

Monopoly

Monopoly

complete control over
the production of a
good or service

Sherman-Antitrust Act

Sherman-Antitrust Act

prohibits activities that
limit interstate
business and
competition in the
marketplace.