Economic Libralism

Question 1

What is the Class system?

Answer 1

Layers of social stratification where individuals in a society are grouped into. Mostly based on wealth.

Question 2

What was the Enlightenment? What is this age also called?

Answer 2

An intellectual movement from the 17th-18th.

Changed peoples belifs on reason, nature and human beings.

Age of Enlightenment

Question 3

What is Industrialization

Answer 3

The stage of economic development. tech → mass production and consumption of goods.

Question 4

What is the Free market?

Answer 4

A market system that operates with a limited gov. intervention.

Question 5

What is Laissez-faire capitalism?

Answer 5

• The invisible Hand
• Oppose Government intervention
• ↑ privatization

Question 6

What is a Limited government?

Answer 6

A belief that little gov involvement in the economy.

Question 7

What is a Traditional economy?

Answer 7

An economic system usually based on traditional beliefs or values***

Question 8

What are the principles of Individualism?

Answer 8

Private property
Rule of law
Individual rights and freedoms
competition
economic freedom
self-interest

Question 9

What is Humanist?

Answer 9

A person who believes in the importance of humans rather than divine or supernatural matters. Stress the value of human beings, and emphasize common human needs.

Question 10

What is an enclosure?

Answer 10

Public property that is converted to private property.

Question 11

What is Nouveau Riche?

Answer 11

Individuals or families who have recently acquired wealth.

Often within the french context.

Question 12

What are the characteristics of John Locke?

Answer 12

People are inherently good. The role of government is to protect the lives of citizens, as well as their rights and liberties** (life liberty and land)**. Any additional government would be considered a detriment to the common good

Question 13

What are the characteristics of John Stuart Mill?

Answer 13

believed people should be free. Wanted limited government control to prevent violation of speech, religion, and association. Would have considered the rights of the individual to be crucial to the establishment of the common good.

Free speech is necessary for intellectual progress.

Question 14

What are the characteristics of Thomas Hobbes?

Answer 14

Humans are inherently greedy, selfish and dangerous. Strong/absolute leadership is needed to maintain the peace and prosperity of a society and to prevent chaos. Without a strong leader, life is likely to be “solitary, poor, nasty, brutish and short”

Question 15

What are the characteristics of Baron de Montesquieu?

Answer 15

Wanted to prevent one ruler from unchecked power. He believed in splitting up government into three branches. Legislative (laws) judicial (evaluates laws) and executive (carries out laws).

Question 16

What are the characteristics of Adam Smith?

Answer 16

Believed that people act in their self-interest and that governments should be sure that contracts are followed and have some (but very few) public works.

Question 17

What is classical conservatism?

Answer 17

an ideology that says government should represent the legacy of the past as well as the well-being of the present, and that society should be structured hierarchically, that a limited electorate should choose government, that leaders should be humanitarian, and that the stability of society is all important.

Question 18

What is a command economy?

Answer 18

An economic system based on public ownership of property in which government planners decide the price, distribution, and products sold.

Question 19

What is communism?

Answer 19

A radical form of socialism where a system of society where each member is working for the common benefit according to his or her capacity, and receiving according to his or her needs.

Question 20

What is feminism?

Answer 20

The belief in the social, political and economic equality of the sexes.

Question 21

What is human rights?

Answer 21

The rights and freedoms to which all humans are entitled to have.

Question 22

What are Labour standards?

Answer 22

Government-enforced rules and standards aimed at safe, clean working environments, and the protection of workers’ rights.

Freedom of association

Question 23

What are labour unions?

Answer 23

Associations of workers engaged in a similar function who unite to speak with management about their concerns. Provides a unified voice.

Question 24

What is Marxism?

Answer 24

A radical form of socialism (often called scientific socialism) or communism to distinguish it from other socialist ideologies.

Believed that total overthrowing of capitalism was needed worldwide to make it work.

Question 25

What is a Mixed Economy?

Answer 25

An economic system based on free market principles but with some government intervention, usually to regulate the industry, moderate the boom-and-bust nature of the free-market business cycle, and offer social welfare programs. Might own some key industries.

Question 26

What is progressivism?

Answer 26

a 1920s movernement in the USA with Theodore Roosevelt. It’s a reaction to the perceived abuses of laissez-faire capitalism.

Favoured “a square deal” for average citizens and used legislation to achieve this.

Question 27

What is socialism?

Answer 27

Any ideology with the belief that the public should control resources for the resources should be controlled by the public for the benefit of everyone in society and not by private interests for the benefit of private owners and investors.

Question 28

What is Luddism?

Answer 28

A protest movement of the early 1800s against industrialization and mechanization. Protesters broke into factories and destroyed machines.

Question 29

What are utopian socialists?

Answer 29

Humanitarians who advocated an end to the appalling conditions of the average worker in the industrial capitalist countries of the 19th century; people who believe it is possible to work to bring about a better world and that obvious evils can be eradicated.

Question 30

What are Humanitarians?

Answer 30

Someone who believes in the supremacy of reason of individuals over faith and who has developed an interpretation of history and beliefs about human nature, the structure of society, and the purpose of life, based on reason rather than religion.

Question 31

What is the Great Depression?

Answer 31

An economic crisis that began in late 1929 with the stock market crash and continued through the 1930s. during this period, banks failed, and factories closed, ↓ the economy.

Question 32

who was Robert Owen?

Answer 32

Believed in Utopian Socialism.

Question 33

What did Karl Marx do?

Answer 33

Developed and believed in Marxism.

Question 34

What did John Maynard Keynes believe?

Answer 34

Wanted government intervention in the market to reduce the length and severity of recessions

When consumer spending is too high and inflation occurs, gov should ↓ spending and ↑ taxes.

Question 35

What is consumerism?

Answer 35

consumer spending.

Question 36

What is income disparity?

Answer 36

The difference in earnings between the rich and the poor.

Question 37

What is inflation?

Answer 37

an increase in the general price level of products, the cost of labour, and interest rates.

Question 38

What is a monopoly?

Answer 38

The exclusive ownership or control of trade in a particular good or service.

Question 39

What is Monetarism?

Answer 39

emphasizes the importance of controlling the money supply to achieve macroeconomic stability. It asserts that changes in the money supply directly affect variables like inflation, output, and employment.

Question 40

Define Raganomics.

Answer 40

The economic policies of Ronald Reagan → less gov in the economy, pro-industry, anti-labour, anti-regulation, anti environmental regulations.

Question 41

What is a bank run?

Answer 41

A situation in which too many depositors try to withdraw their savings from a financial institution, endangering it with bankruptcy.

Question 42

What is the new deal?

Answer 42

Economic policies by US President Franklin D Roosevelt in 1933. The policies gave the government a more significant role in the regulation of the economy.

Provided social safety nets.

Question 43

What are social programs?

Answer 43

Programs that affect human welfare in a society economically and socially.

Question 44

Define trickle-down economics.

Answer 44

Gov policies reduced control of businesses and increased gov spending on the military.

↑ money to businesses, ↑ money to lower class

Question 45

What is a welfare state?

Answer 45

A state in which the economy is capitalist, but the gov policies modify the market forces to ensure economic stability and a basic standard of living for citizens.

Question 46

What were the important things to know about the Roaring 20s?

Answer 46

a textbook economic BOOM. Hoover believed in little gov intervention. ↑↑↑ consumerism and personal wealth. There were more things for consumers to spend money on

Question 47

What was Theodore Roosevelt known for economically?

Answer 47

He was known for regulating big businesses and promoting healthy competition. He created the square deal ( to protect business interests, labour rights, and consumer protection.)

Question 48

What was Milton Friedman known for economically?

Answer 48

he advocated for monetarism, which emphasizes controlling the money supply as a means of stabilizing the economy.

In a recession he would change interest rates, but not government spending.

Question 49

What was Friedrich Hayek Known Economically?

Answer 49

He is known for his belief in the “invisible hand”. The government was meant to protect the free market and maintain business competition.

Question 50

What are the different periods that we need to know?

Answer 50

Renaissance → Reformation → Enlightenment (age of reason)