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Flashcards in Chapter 5 Deck (27):
1

If we socialize an individual's cost or value,

we spread it to society, at large.

2

An advocate of socialism asserts that

the individual should act to promote the good of society, not to promote the individual's well being.

3

Karl Marx said that

production should come "from each, according to his ability, to each, according to his need."

4

The only alternative to individual freedom is

authoritarian choice.

5

Marx predicted that

as technology advanced, workers would become obsolete.

6

A modern rationale for socialism is

that we must socialize individual decisions by state force in order to counter nature's socializing effects.

7

Socializing effects that spill over into other costs are

external costs.

8

External costs and external benefits are called

externalities.

9

A polluting firm

imposes costs that they do not pay. This counters efficient decision-making that says these costs should be paid.

10

If individuals do not agree with the state's decisions, the state can

1) Allow individual choice, but this will not be "serving societal well being" or 2) Use force and threat to maintain the socialist order.

11

If the state takes all property rights,

communism exists.

12

Fascism is

a system in which the state does not take full property rights, but dictates to the populace who will control the land and how.

13

U.S. Socialism is

fascistic in nature.

14

Imminent domain involves

property being taken for state use (roads, etc), with compensation for the owner.

15

Civil forfeiture involves

a person being suspected of a crime and then state taking property because it could be involved in committing the crime

16

The latest socialist rationale is that

if the state provides any goods that an individual might derive external benefit, no property or income is private and the state is justified in taking said property or income.

17

Bastiat thought that

there is no difference in taking money or physical labor from the populace, because the results are the same.

18

The right to the "pursuit of happiness" means that

individuals have the right to own property, choose their own profession, etc.

19

In the capitalist's view, society's best interest

is promoted by those individuals with property rights making voluntary decisions.

20

These individuals do so by

engaging in value creating production or trade.

21

Free markets

give individuals incentives to voluntary serve.

22

Socialism divorces consumption from production, which is known as the

incentive problem of socialism.

23

Socialists point out

only differences in income, without understanding why those differences exist, and say that states should use force to fix these differences.

24

While most people think that there is an increasing 1%, Thomas Sewell demonstrates

that these are mostly elderly folks, and those who are in the 1% aren't likely to stay.

25

Friedman thought that

there is no system that can hold capitalism's jock strap.

26

Although the poverty rate is nearly at the same number it was at 40 years ago before increased spending to fight poverty,

America spends 1 trillion dollars to fight poverty.

27

An efficient economy that creates value

can help poverty.