Chapter 5 questions Flashcards Preview

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Flashcards in Chapter 5 questions Deck (20):

What does it mean to "socialize" a cost?

to spread an individual cost to society


According to socialists which economic goal should individuals strive to meet?

to promote the good of society


what did marx say about production and the distribution of goods and services?

from each according to his ability to each according to his need


what did max predict about unemployment rates? what reason did he give for his prediction?

Technological advances would replace labor with capital, causing a growing army of the unemployed


why were socialists searching for new ways of selling socialism by the 1950's?

Because Marx's prediction of worsening conditions of workers and worsening unemployment did not come to pass


True, False Explain: Only government socializes costs and benefits that are socialized unless the government does it

false, some benefits and costs are not socialized by government, such as national defense and the cost of pollution


what reason do capitalist philosophers give for not expanding the state to solve the problems of externalities?

The public choice school points out that government officials are self interested and have limited knowledge. meaning
-they may not be interested in solving problems, but in getting money and reelection
-their limited knowledge may cause them to make things worse as they try to solve problems


How can the state maintain a socialist order if individuals disagree about their abilities, needs or what is best for society?

by force


true, false. socialism can only exist with unelected dictators in power

false. if costs and or benefits are socialized by legal system, socialism exists, whether or not the state is headed by a dictator.


an economic system under which state has title to all property is called



an economic system under which the state leaves property in private hands but extensively regulates the use of property is called



who receives the profits of civil forfeiture

the law enforcement body that seized the property


What is the latest rationale for socialism in the US?

if the state produces a good with spillover benefits, the state is justified in dictating the use of individuals propert


why is the percentage of total spending done by the state a measure of the degree of socialism?

because as the state spends more, it makes more of the economic decisions, that is, the individual more and more serves the state's concept of "good of society"


What do many philosophers consider the legitimate functions of the state?

Protection of property and persons


how do markets encourage conservation of a resource that becomes scarcer

by increasing it's price


what do capitalist philosophers say about how markets solve fairness problems?

markets may or may not solve fairness problems, but given the limitations of the state, it might not do any better and may make things worse


what did milton friedman point out different economic systems in his interview with a talk show host?

the leaders of all states are greedy, but capitalism harnesses that greed to improve the general welfare, where as socialism does not?


how is poverty related to anti-poverty spending? How is poverty related to economic growth?

poverty does not seem to respond to anti-poverty spending, but economic growth reduces poverty


What is one are where government spending on fairness replaced private spending?

Unemployment insurance and education