Capitalism and the U.S. Economy Flashcards
What does the invisible hand mean?
The invisible hand that makes sure the economy works through supply and demand. So when we buy there is always something which is a policy of minimum government in the economic affairs of individuals of society.
What does laissez-faire mean?
We stay out of the economy to ensure that it allows peaceful environments. Instead of no government.
How does a market economy answer the three key questions?
What to produce ( what are people willing to pay for your product ?)
How to produce (how much of a profit can I make off this profit ? )
And for whom we should produce?
Why does capitalism work well?
Capitalism works well because it is a dynamic system involving three parties workers, consumers, and capitalists.
Why does capitalism NOT work well?
Capitalism did not work well because of very few rules tied to the government and factories which meant factories had terrible working conditions which led to many people getting seriously injured while doing their jobs.
What is communism and why does it not work either?
Communism is an ideology that promotes common ownership for equality, but it faces challenges in practice. These challenges include temporary centralization of power and discouraging innovation and economic growth.
What is a welfare capitalist economy?
A system that inclufes social policies and/or the practice of businesses providing welfare services to their employees.
How do we know that the United States is a welfare capitalist state?
In the United States, they have welfare capitalism which refers to industrial relations, policies of large, and usually not unionized, and companies that have developed internal welfare systems for their employees.
Why do we say that the United States has moved left in the last century?
They have shifted left because they were willing to have some government control to protect the less fortunate they are still considered more right-wing than Canada.
