Social Studies Flashcards
Who wrote The Wealth of Nations, and invented field of modern economics?
Adam Smith
Economics
The study of how people produce, buy, sell goods and services
Goods
Things you buy
Services
Tasks that you pay people to do
What did Adam Smith believe in?
More freedom people had, more harmonious society would be
Exports
Goods sold to other countries
Imports
Good bought from other countries
Mercantilism
Governments actively interfered with the economy. Supported their own nation’s industries, and discouraged the purchase of goods from other countries
Zero-Sum Game
Where one country’s gain is necessarily anther’s loss; wealth comes from labor, not gold or silver
How can a country’s economy grow without decreasing wealth of its neighbors?
Through increased labor or productivity
What are the 3 general strategies for helping economy grow?
- Letting people pursue own self-interest or individual goals. 2. Division of Labor 3. Free Trade
Invisible Hand (of the market place)
Allowing people to pursue own self-interest or individual goals
How can one produce more goods?
When work is broken up into simple tasks
Free Trade
When government stays out of way of international trade everyone benefits
What is preferable to an economy?
Free Market
Free Market idea is known as…
laissez-faire, french for “Let it be”
Laissez-faire
Let it be
Who is known as the father of modern economics?
Adam Smith
Communism
Is an economic system where wealth is distributed evenly to everyone
Capitalism
Everybody competes to make money
What does a pure communist society include?
No private property and everybody would be equal in wealth and social status
Communism was created by what two German philosophers?
Karl Marx and Friedrich Engels
What did Karl Marx and Friedrich Engels publish?
A short pamphlet called The Communist Manifesto
What was their thought on capitalism?
Created of two unequal classes Proletariat and Bourgeoisie