economic outline Flashcards
what type of economic system does the US have
capitalism
what are the factors of production
land, capital, labor
can people in the US own their labor and sell it to an employer
yes
what happens when entrepreneurs start a business
it creates more jobs
more jobs =
more money
more money=
people can but more things
what type of system is capitalism
free enterprise
what are free enterprise and free markets usually associated with (political party)
democrats
everything in a capitalist economy is based on ______
freedom
what type of things can happen in a capitalist economy with freedom
entrepreneurs can change businesses
workers can quit their jobs
workers can organize themselves into unions
______ is to a capitalist system
private ownership
what type of things can happen in a capitalist economy with private ownership
business owners will decide how to use their capital and how to invest workers also own their labor workers choose their type of job workers agree to salary workers can quit
what type of things can happen in a capitalist economy with individualism
anyone can stat their own business
exchange ideas to help advance their business and life
more exchange of ideas =
more ideas in society
if people invest in themselves or their business, they they are entitled to receive___________
any benefits
can you make a profit in a capitalist system
yes
what causes entrepreneurs to invest further
desire for more money
more investment=
more jobs
a capitalist system creates_______
competition
what does competition do to products
prices stay low and quality remains high
how are prices determined
supply and demand
what happens if there is more of a supply and demands stay the same
prices fall
what happens if demand increases and supply stays the same
prices fall
what happens if demand increase and supply stays the same
prices rise
does competition always favor the consumer
no
what happens if a company is too good and knocks out all the competition
monopoly
what advantage does a monopoly have
they can charge whatever price because there is no competition
how did the government feel about monopolies
hurt the free market
who watches to make sure there are no trusts or monopolies
justice department
what was adam smiths book called
the wealth of nations
what should the government do in a Laissez Faire capitalism
foreign relations and national defense
create a police force and court system to protect private property
do things that private companies can not do for a profit
is the US economy a capitalist
yes but government doesnt get involved
who regulates the economy in capitalist and example
government
ex: food safety standards
how does the government help economic life in a capitalist economy
fixing highways, provide public health programs
who runs schools, the post office, and utilities in a capitalist economy
government
Generally government plays a larger role in the economy in ______
europe
what countries are known for having public health care
european countries
what was the working limit in France up until recently
35 hours
what are the economic rivals to capitalism
socialism and communism
what did Karl Marx write
Communist Manifesto
What did Karl Marxs book do
called on all workers to unite against capitalist enslavement
did karl marx believe that higher classes always oppressed lower classes
yes
what did Marx think that class struggle would do
lead to war
did karl marx believe in supply and demand
no
what did karl marx believe when i came to workers and sellers
workers should receive the full value of their work and the seller should not profit
did marx like organized religion
no
what did karl marx think about religion
it was the opiate of the people, which causes workers to tolerate their unfair lives
what was karl marx’s ultimate goal
to have a classless society
what did Marx think about the authoritarian government
it would subside once the classless society developed
workers would unite as ____ and not as _______ (according to karl marx)
workers not authoritarians
who would own private property according to Karl Marx
society (no fighting)
did europeans agree with marx
yes
what type of leader did people not really want
authoritarian
how did people feel about developing a fair economy
not everyone wanted to go to extreme measures to do it
how do socialists want to achieve their economic goals
peacefully
what do socialist governments take over
only certain industries (manufacturing, transportation, utilities)
what type of industries usually stay in private ownership in a socialist government
neweer industries or technological industries
how do socialist governments feel about workers
they should have a say in how their workplace operates
what type of things do socialist governments fully control
retiremnt, pensions, free education, universal healthcare, and housing
how does medical and dental work in a welfare state
free
benefits of a socialist country
medical and dental free
pensions
some give parents money for their kids up until 18
maternity and paternity leave
how are taxes in socialist countries
high on job taxes and consumer goods
highest percent of income taken out of a socialist countries income resident
60%
sweden and Portugal tax percent
70%
denmark sweden and norway tax rate
25%
united kingdom and france tax rate
25%
who are economic decisions made by in a socialist government
the government
most people associate socialism with ______
Europe
More recently socialism has grown in ______
Latin America
what did Hugo Chavez do
nationalized oil industry, telecommunications, and electricity, while promising free healthcare, education, and housing
did poor people supposed chavez
yes
what caused Venezuela’s inflation and shortage of goods
lack of competition
which is more successful: communism or socialism
socialism
did karl marx say how a communist government was supposed to operate
no just how to work
what does the communist party control
all parts of the government and all parts of life
example of central planning
people who work for the government will supervise and run the factory
most well known communist country
soviet union
what happen as soon as Stalin became the leader of the soviet union
ordered government to take over factories and farms
did the soviet government give benefits
yes
examples of soviet government benefits
free education and healthcare
cons of the soviet government
not classless
how many independent countries did the soviet become
15
examples of independent countries that were once the soviet
russia, ukraine, lithuania
What happens to businesses in Russia through out the 1990’s
became privately owned
