Chapter 5 class questions Flashcards
what does it mean to socialize a cost?
to spread individual cost to society
according to socialists, which economic goal should individuals have?
promote good of society
what did Karl Marx say about production?
according to his ability and to each according to his need
according to socialism, something keeps individuals from auctioning off their labor to the highest bidding firm. what is that something?
firms are not in competition. they are all on the same team
what did Marx predict about unemployment rates? what did he give for his prediction?
technology advances would replace labor with capital, causing a growing army of the unemployed
why were socialists searching for new ways of selling socialism by the 1950’s?
Marx predictions of worsening conditions of workers and worsening unemployment did not come to pass
t/f only government socializes cost and benefits by tax
false, some benefits and costs are not socialized by government, such as the benefit from national defense and cost of pollution
naturally spread to society
cost of natural spill over
externality
second hand smoke is what that the consumer produces. each pack of sigs lowers medicare cost by .41
external costs
what reason do capitalists philosophers give for not expanding the state to solve the problems of externalities
the public choice school points out that government officials are self interested and have limited knowledge. they may not be interested in solving problems but in getting money and reelection and their limited knowledge may try to solve problems
how can the state maintain socialist order if individuals disagree about their abilities, needs, or what is good for society
by force
t/f explain, socialism can only exist with unelected dictators
false, if cost and benefits are socialized by legal systems
an economic system under which the state has the title to all property
communism
an economic system under which the state leaves property in private hands but extensively regulates
fascism
what is eminent domain?
state taking private property but compensating the owner
what is civil forfeiture?
state taking private property from those it suspects of criminal behavior
who typically receives proceeds from civil forfeiture?
law enforcement body that seized the property
what is the latest rational for socialism in the US?
if the state produces any good with spillover benefits, the state is justified in dictating the use of individuals property
why is the percent of total spending down by the state a measure of the degree of socialism?
because the state spends more, it makes more of the economic decisions, that is, the individual, more and more serves that states conception of the good of society
what do many capitalist philosophers consider the legit functions of the state?
protection of property and persons
what does the pursuit of happiness mean?
right to use property freely, choose profession, make contacts, and travel
if property is protected, how can individual in capitalist society advance materially?
by creating value through production and or trade
how do markets encourage conservation of resources that become scarce?
by increasing the price
we find things to replace these scarce resources
what do capitalist philosophers say about how markets solve fairness problems?
may or may not be solved. given limit of state, might not do any better and may make things worse
- calculation problem and self interest
- would have to have continuous equalization
