chapter 4 economics Flashcards
societies differ in their approach to solving scarcity
economic system
Clayton
Economic Principles and Practices
Economic Principles and Practices, Clayton
an organized way by which a society provides for the needs and wants of the people
Vivar
Economics: Theories and principles
Economic: Theories and principles, Vivar
the sum total of institutions and models of customs , which have become permanent and became a part of economic activities of a country
Tullao
Understanding Economics in the Philippine Setting
3 prototypes of economic system:
traditional, command. market
the oldest type of economic system
traditional system
activities according to practices handed down from their ancestors
traditional system
reasons why they still do traditional:
value their customs and traditions, find these activities still relevant to granting their needs
bad about traditional
they are boring, not innovative
a society that operates like an army
command system
a powerful authority manages the economy from top to bottom
command system
downsides of command system
no freedom; choice, enterprise, private initiative
good side of command system
everyone is equal
not only a place for trading but also a mechanism through which economic activities are organized
market system
who started the market system
Adam smith in England
Adam Smith book
the wealth of Nations, 1776
the key to progress is allowing individuals to pursue their self interest and to satisfy themselves without the government interference as much as possible
market system
individuals are free to make economic decisions
market system
determines the price of the product
interaction
rapid increase in prices
inflation
decline in economic activity
recession
economic effect of the activity to a third party
externality
downsides is market system
inequality, fluidity, externalizes, abuse of freedom
introduced capitalism to the world
Adam Smith
ideal society, private ownership of resources
capitalism
capitalism in french
laissez-faire
invisible hand theory
without the interference of the government, the economy is still doing good mostly because of competition between businesses
money votes, what consumers mostly buy
market signals
state ownership
socialism
workers
proletariat
capitalists
bourgeoisie
phalanxes
Charles Fornier
cooperative communities which communities would work according to their abilities
phalanxes
socialism two form:
reform, revolutionary
economy to capitalist to socialist (system of worker or state owned)
reform
totalitarian control of the state
revolutionary
often used interchangeably with socialism
communism
communism originated:
Karl Max, Friedrich Engels
Karl Max, Friedrich Engels
Manifesto of the communist party
symbol of authority
fasces
exalts nationalism as the supreme value
fascism
is the ideal market capitalist that Adam Smith envisioned, no government intervention
pure market capitalist
less rigid version of the capitalist, allows government intervention
advance market capitalist
combines socialism and capitalism, small businesses only
market socialist
state ownership of resources and of means of production
command socialist
mixed planned and market
democratic socialism
perfect blend of capitalism and socialism or market and command
welfare state economy
classifications of economic system
pure market socialist, advanced market socialist, market socialist, command socialist, welfare state economy
