Pg 5 Flashcards
(9 cards)
What is capitalism?
An economic system owned by private individuals or corporations rather than the government
Capitalism emphasizes private ownership and market economy.
What is a key characteristic of capitalism?
Profit motive
Profit motive drives individuals and companies to earn profits, influencing economic decisions.
What role does competition play in capitalism?
Encourages innovation and efficiency
Competition among businesses leads to better products and services.
Who was John Maynard Keynes?
An economist who advocated for government intervention during economic recessions
Keynes believed that increasing government spending and cutting taxes could stimulate demand.
What did Friedrich Hayek advocate for?
Free-market capitalism and limited government intervention
Hayek emphasized the importance of individual choice in the economy.
What is Milton Friedman’s stance on government intervention?
Supported free-market capitalism with minimal government intervention
Friedman believed that free markets lead to more efficient economic outcomes.
What does the WTO stand for?
World Trade Organization
The WTO deals with the rules of trade between nations.
What is the primary function of the WTO?
Facilitates smooth, predictable, and free trade between countries
The organization aims to reduce trade barriers and promote international trade.
What was the goal of the Kyoto Protocol (1997)?
To reduce greenhouse gas emissions responsible for global warming and climate change
The protocol set binding obligations on industrialized countries to reduce emissions.
