Economics in Industry

Question 1

Capitalism

Answer 1

• Capitalism is an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit
  
  • Gov. shouldn’t interfere (laissez faire)
  • smith, malthus, and Ricardo believe in this philosophy
  • opposed the gov. efforts to create minimun wage or help the poor
  • Large populations created cheap labor

Question 2

Utilitarianism

Answer 2

• Theroy that gov. actions are useful only if they promote the greatest good for the greatest # of people
  
  • Jeremeny Bentham
  • judge ideas based on utility or usefulness

Question 3

Socialism

Answer 3

• economic system where the factors of production are owned by the public and operate for the welfare of all
  
  • charles fourier and saint simon
  • gov. should plan economy
  • public ownership would lead to no poverty and equality

Question 4

Communism

Answer 4

• form of complete socialism in which the means of production—all land, mines, factories, railroads, and businesses—would be owned by the people. Private property would in effect cease to exist. All goods and services would be sharedequally.
  
  • Final stage of Captialism by Marx (communist manifesto)
    
    • Economic system should dominate society

Question 5

Union

Answer 5

• association of workers, formed to bargain for better working conditions and higher wages
  
  • negotiations btw workers and their employees for better working conditions
  • went on strike to raise conditions

Question 6

Laissez Faire

Answer 6

• Idea that gov. should not interfrere with or regulate industries and businesses
• “let do” free market
• Adam Smith (The wealth of Nations)
  
  • 3 natural laws of economics

Question 7

Social Darwinism

Answer 7

• applied natural selection to economics
  
  • competition in free markets in capitalism
  • those who were fit, were wealthy while those who were unfit, were poor