Economic Institutions

1
Chapter 18

• Economic Institutions

2

• MarketAn economic institution that regulates
  exchange behavior through the establishment of
  different values for particular goods and
  services.
• TechnologyTools, procedures, and forms of social
  organization that increase human productive
  capacity.

3

• Multinational corporationAn economic enterprise
  that has headquarters in one country and conducts
  business activities in one or more other
  countries.
• MercantilismAn economic philosophy based on the
  belief that the wealth of a nation can be
  measured by its holdings of gold or other
  precious metals and that the state should control
  trade.

4

• Laissez-faire capitalismAn economic philosophy
  based on the belief that the wealth of a nation
  can be measured by its capacity to produce goods
  and services (i.e., its resources of land, labor,
  and machinery) and that these can be maximized by
  free trade.
• SocialismAn economic philosophy based on the
  concept of public ownership of property and
  sharing of profits, together with the belief that
  economic decisions should be controlled by the
  workers.

5

• Democratic socialismAn economic philosophy based
  on the belief that private property may exist at
  the same time that large corporations are owned
  by the state and run for the benefit of all
  citizens.
• Welfare capitalism An economic philosophy in
  which markets determine what goods will be
  produced and how, but the government regulates
  economic competition.

6

• AlienationThe feeling of being powerless to
  control ones own destiny a workers feeling of
  powerlessness caused by inability to control the
  work process.
• ProfessionAn occupation with a body of knowledge
  and a developed intellectual technique that are
  transmitted by a formal educational process and
  testing procedures.