Flashcards in Chapter 6 Test Deck (29):
According to Adam Smith, what are the three principal functions of government
-Government is to protect its citizens from foreign aggression
-to protect the rights of its citizens from infringements by others.
-to provide public goods
Give an example of a public good
Why is radical capitalism unscriptural?
It’s denied legitimacy of government
In the eighteenth century, what did liberal mean?
People who believed in liberty
Measure of quality of life in a country
Standard of living
What a persons income could buy
Weakness of capitalism
Greed and materialism
Transitional economic system between free markets and governmental ownership
The government sells businesses back to private individuals
Economics system characterized by private ownership and decision making
Adam Smith’s ideal economic system
Classic liberal capitalism
Government is no longer necessary since everyone is acting in the best interest of others
Economic system that leans towards capitalism and has extremely high taxes
Gold and silver in the government’s treasury are what is important
The government takes possession of key industries
A central authority controls resources and makes economic decisions
Private ownership of businesses but with frequent governmental intervention
In what year did mercantilism end in America
What is not one of the strategies of mercantilism?
Refuse to sell goods and services to foreign nations
What does laissez faire mean
5 points of mercantilism
3. Domestic manufacturing
Which of the following is not one of the distinguishing characteristics of a capitalistic economy
A. Workers decide all questions of policy for their particular business.
B. Individuals own a majority of the factors of production.
C. The government does not own the businesses that are cornerstones of the economy
D. Most economic decisions are made by individuals
According to Adam Smith, why do the butcher and barker provide our dinner?
Because it is in their own best interest to do so
What system do the government not exist
When would a social democracy be least likely to assume control?
A shoe factory
A _____________ balance of trade is said to exist when a nation sells more goods and services than it purchases
In his book_____________, Adam Smith refuted the economic policies of mercantilism
Wealth of Nations
Why did mercantilism promote colonization
To aquifer new supplies of the factor of production