Chapter 5

Question 1

Socialize

Answer 1

To spread an individual’s wealth or value to society at large

Question 2

Karl Marx

Answer 2

Founder of Socialism.

“Production should come from each according to his ability, to each according to his need.”

Question 3

External Costs

Answer 3

Costs that naturally spill over to others

Question 4

Externalities

Answer 4

External Costs and Benefits

Question 5

Eminent Domain

Answer 5

Where property is taken for state public use, but the owner is compensated

Question 6

Civil Forfeiture

Answer 6

Where a person is suspected of committing a crime and that person’s property is seized because it is suspected of having contributed to the crime

Question 7

The pursuit of happiness

Answer 7

the right to hold and use property freely, to choose one’s profession, to make contracts and travel.

Question 8

Incentive Problem of Socialism

Answer 8

socialism separates production and consumption, taking away incentives to voluntarily serve.

Question 9

Authoritarian choice

Answer 9

Where the states decisions are made by a dictator

Question 10

Fascism

Answer 10

where the state does not take the title to property, but orders the use of that property

Question 11

Milton Friedman on Greed

Answer 11

Leaders of all states are greedy, but capitalism harnesses that greed and uses it to better society