The Economic Axis Flashcards
What is economics?
The study of how societies produce and distribute material resources and services.
What does the economic axis represent?
The range of economic ideologies from the economic right, favoring less government intervention, to the economic left, supporting more regulation.
What is the core belief of the economic right?
The government should interfere as little as possible in the economy.
What do supporters of the economic right argue about decision-making in the economy?
Individuals and businesses should make decisions about production, distribution, and pricing, rather than the government.
What are the key policies supported by the economic right?
- Lower taxes
- Fewer business regulations
- Privatization of industries
- Free trade policies
What is the main idea behind the economic right’s perspective?
Freedom for businesses and individuals leads to wealth creation and opportunities.
What does the economic left argue regarding government intervention?
It is necessary to regulate the economy, protect workers, and ensure fair wealth distribution.
What three risks does the economic left associate with unregulated capitalism?
- Significant inequality
- Worker exploitation
- Financial instability
What three policies does the economic left advocate for?
- Higher taxes on the wealthy
- Stronger labor protections
- Government programs for essential services
What is capitalism?
An economic system where the market determines production, distribution, and pricing, and property is privately owned.
What are the four key conditions for capitalism to function properly?
- Right to property
- Freedom of contract
- Market-determined prices
- Rule of law
What does the right to property entail?
Individuals can own and control resources.
What is meant by freedom of contract in capitalism?
Individuals can enter into agreements without government interference.
How are prices determined in a capitalist system?
By the market, guided by supply and demand.
What role does the rule of law play in capitalism?
It enforces contracts, protects property rights, and ensures fair competition.
What is a central issue in economic and political debates?
The extent to which governments regulate or modify capitalism.
True or False: The economic right supports strong government regulation of the economy.
False
Fill in the blank: The economic left seeks to balance free-market principles with _______.
[social protections]
