Test #1 Flashcards
Definition of Liberal
society should be fluid and changing
Who is Adam Smith?
famous scottish theorist who wrote “The Wealth of Nations” in 1776
What does sedentary life mean?
the extent to which one is settled in a place
What is capitalism?
concept of rational thinking and doing where people own their own private property/commodities (capital)
What is capital?
wealth in the form of assets
Who are the originators of capitalism?
Adam Smith and David Ricardo
Why was the church separate from the Enlightenment?
The church thought rationally
In order for capitalism to function you must have:
private property, formal legal system/laws, a state or gov
Problems with 19th century capitalism:
it only works with people that have capital, produces tech but labor is weakening to humans
What is Ricardo’s Labor Theory?
Capitalism is quantitative
What is Marx’s view on capitalism?
It is qualitative for a more efficient ecomony (intangible things)
Why can’t communism work?
We can’t measure qualitative things in humans
Definition of scarcity vs. Adam smith’s viewpoint on it
When u have finite amount of resources, but unlimited wants and desires vs. there is a human condition of scarcity that is on-going (scarcity is where capitalism starts)
What is the concept of opportunity cost?
The cost of the next best alternative forgone (When a certain choice forfeits other opportunities)
The next best alternative is the opportunity cost
Planned (communism) vs. market (capitalism)
Communal/central planning vs. price mechanism (price determined from producers and consumers)
