Economics

Question 1

economic systems

Answer 1

public enterprise
command economy
centrally planned
state economy

Question 2

Karl Marx

Answer 2

theory- if a place that works together and runs on wage labour, then there would be class struggle (workers taking power)
capitalism would lead to communism
planning- social utopianism

Question 3

Critique of Capitalism 1867

Answer 3

• society > individualism
• planned production > self interest
• profits should be shared
• capitalism ignored human conditions
• producers saw worker as no value

Question 4

Communist Manifesto 1848

Answer 4

workers awareness of plight- works would do something about their problem, leads to revolution

Question 5

Dialect Materialism

Answer 5

1. exploitation of power
2. bourgeoisie accumulate, and pay proletariat subsistence wages
3. crisis falling profits
4. rich-richer, poor-poorer
5. inevitable revolution of plight
6. dictatorship of proletariat
7. classless society
8. withering of state, everyone equal

Question 6

main ideas of marxism

Answer 6

1. class struggle
2. bourgeoisie (oppressor) vs. proletariat (oppressed)
3. inevitable victory of proletariat
4. revolution, public ownership

Question 7

Robert Owens

Answer 7

• Utopian socialism
• profit motive that revolves around collectivism
• ownership is voluntary, not through class struggle/revolution
• modern liberalism

Question 8

Smith’s theory

Answer 8

1. anti-mercantilism- royal controls producers, ignores consumers
2. decentralization- should be made by producers/consumers
3. barter system- fair exchange, if people have self-interest = long prosperity

Question 9

Laissez-faire

Answer 9

smith, let it be, no gov

Question 10

invisible hand

Answer 10

smith, market forces supply/demand and prices, long prosperity, competition

Question 11

role of gov in free market

Answer 11

• national defense, stability
• private property, competition
• anti-monopoly laws, competition

Question 12

unemployment

Answer 12

cheap labour = diversity goods

self interest

Question 13

what was Dicken’s, chaplin, and marx’s response to smith’s theory?

Answer 13

does self-interest serves as a common good

Question 14

capital

Answer 14

initial money needed to gain land and labour

Question 15

scarcity

Answer 15

finite resources/infinite demand

Question 16

economic bubble

Answer 16

price range exceeds value

Question 17

social costs

Answer 17

capitalism/individualism/profit motive leads to achievments

Question 18

consumer sovereignty

Answer 18

free to make their own decisions, dollar voting

Question 19

profit motive

Answer 19

reasons producers produce to make a profit

Question 20

innovation

Answer 20

competition

Question 21

wealth of nation

Answer 21

sum total of production

Question 22

Hubris

Answer 22

great crash of october 1929

Question 23

free market factors that lead to the great depression

Answer 23

• unregulated banking (laissez-faire)
• consumer confidence
• inflated economic bubble
• domino effect of unemployment

Question 24

hyperinflation

Answer 24

too much money, few goods

inflation of germany 1920- inflation to hyperinflation

Question 25

stock market crash 1928/29

Answer 25

loss of consumer confidence and savings

Question 26

John Maynard Kaynes

Answer 26

demand side, gov needs to spend money to create jobs, mixed economics, left wing, modern liberal, cradle to grave theory

Question 27

demand side

Answer 27

gov intervention, public property, increase of regulation

Question 28

Hayek and Friedman

Answer 28

capitalism is good, opposite of Kaynes, no gov, though like smith, central planning, free market, monetary policy, classical liberal

Question 29

neo-conservative response

Answer 29

uses demand side fails to create free market, less gov

Question 30

Naunced

Answer 30

freer market

Question 31

reagonomics

Answer 31

1. reduce gov spending 2. reduce taxes 3. reduce gov regulation 4. control money supply to reduce inflation

Question 32

Welfare state

Answer 32

protection of those who can't provide | social safety net to prevent from going into poverty

Question 33

fiscal policy

Answer 33

taxation and gov spending | progressive taxes- pay % of tax based on income

Question 34

Monetary policy

Answer 34

encourages consumer confidence, limits inflation - lack of confidence = money increases to lower interest rates - show of confidence = money decreases to increase interest rates monetary- controlling money supply

Question 35

Bolshevik revolution 1917

Answer 35

overthrows monarchy and removes itself from WWI (war communism) - Lenin and vanguard, extremists goal- nationalize industries public property)

Question 36

new economic policy 1921

Answer 36

Lenin, mixed economy with capitalism | NEP- pragmatic, private enterprise

Question 37

Stalinism

Answer 37

- different than marx b/c communism should be world wide - Stalin, USSR - POLITBURO: executive committee of communist party - GOSPLAN: economic state planning communism

Question 38

5 year plan 1928-1953

Answer 38

- stalinism 1. modernization 2. industrialization 3. collectivism- ukraine famine (Holodomor), land owners (Kulaks), prison camps (Gulogs) 4. militarization

Question 39

capitalism

Answer 39

boom and bust cycle | roaring 20's

Question 40

economic triangle

Answer 40

- long term prosperity | - consumer, producer, gov

Question 41

unions

Answer 41

coming together to achieve a common goal, collective bargaining, center left

Question 42

Leninism

Answer 42

communist vanguard leads to world proletariat rule (NEP)

Question 43

Stalinism

Answer 43

using fear/terror to rule and to achieve communism (centrally planned)

Question 44

Great Depression

Answer 44

demanded gov to reconsider social contract, created jobs for people

Question 45

deregulation

Answer 45

leads to investment/growth, raising unemployment, improving taxes

Question 46

privitization

Answer 46

selling public property to individuals