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Flashcards in Chapter 5 Deck (11):
1

Socialize

To spread an individual's wealth or value to society at large

2

Karl Marx

Founder of Socialism.

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

3

External Costs

Costs that naturally spill over to others

4

Externalities

External Costs and Benefits

5

Eminent Domain

Where property is taken for state public use, but the owner is compensated

6

Civil Forfeiture

Where a person is suspected of committing a crime and that person's property is seized because it is suspected of having contributed to the crime

7

The pursuit of happiness

the right to hold and use property freely, to choose one's profession, to make contracts and travel.

8

Incentive Problem of Socialism

socialism separates production and consumption, taking away incentives to voluntarily serve.

9

Authoritarian choice

Where the states decisions are made by a dictator

10

Fascism

where the state does not take the title to property, but orders the use of that property

11

Milton Friedman on Greed

Leaders of all states are greedy, but capitalism harnesses that greed and uses it to better society