Unit 1 Pt. 1 Flashcards
(29 cards)
What is socialism?
A political and economic system that emphasizes equality of opportunity and involves state intervention to redistribute income from high earners to others.
What does socialism allow regarding property and ownership?
Socialism allows private property and private ownership but may impose taxes on wealth and inheritance.
Who developed the theory of Communism?
Karl Marx.
What was Marx’s view on the working class?
He argued that the working class should rule in the interests of the people and advocated for a revolution to overthrow capitalism.
What is the main difference between democratic socialism and Communism?
- Democratic socialism emphasizes parliamentary democracy
- Communism promotes revolution and authoritarian rule
What is the essential feature of capitalism?
The motive to make a profit.
What are the pillars of capitalism?
- Private property
- Self-interest
- Competition
- Market mechanism
- Freedom to choose
- Limited role of government
What is fascism?
An economic system where the government controls private entities that own the factors of production.
What is a characteristic of fascism regarding nationalism?
Fascism uses nationalism to override individual self-interest and subjugates the welfare of the general population.
What are the seven characteristics of fascism?
- Usurpation
- Nationalism
- Militarism
- Father figure
- Mass appeal
- Government surveillance
- Persecution
True or False: Fascism supports the destruction of existing social structures.
False. Fascism works with existing social structures.
Scarcity
A limited amount of resources to meet unlimited wants and needs.
3 Causes of Scarcity
- Personal Perspective
- Poor Distribution of Resources
- Rapid Increase in Demand
3 Ways to Deal w/ Scarcity
- Doing w/out smth
- Creating more resources
- Making better use of our resources
Real Costs
All the resources used to produce a good/service
Trade Offs
When you choose between 2 possible uses for a resource, giving up one alternative for another.
Opportunity Cost
The value of time, money, goods, + services given up in an economic choice.
Cost
A forgone opportunity.
Production Possibilities Curve (PPC)
Represents all possible maximum combinations of total output that could be produced.
4 Assumptions of Opportunity Cost
- Resources are fully employed
- Production takes place over a specific time period
- Resources are fixed for the time period
- Technology doesn’t change over the time period
Efficiency
A point along the line where everyone is employed + all resources are used correctly.
Production Possibilities Frontier (PPF)
A change in resources shifts the position of the PPF.
Impact of Economic Growth on PPC
- Increases the production of possibilities of the 2 goods
- Occurs over the long run
- Illustrated by an outward shift of the curve
Reasons Causing Economic Growth
- New technology
- More labour
- More supply
