Unit 2: Economic Theorists: Karl Marx

Question 1

Karl Marx

Answer 1

• Wrote about economics, political economy, and society.
• Philosopher, author, social theorist, economist
• Famous about his theories about capitalism, Socialism, and communism

Question 2

Published in 1848

Answer 2

The Communist Manifesto
- Later ‘Das Kapital’
- collaborated with his friend and social theorist Friedrich Engels: known for his writings, favouring Socialism and communist revolution

Question 3

Marxism Economics

Answer 3

• largely rejected today, many of marks is critiques of capitalism remain relevant today

Question 4

Born and died

Answer 4

Born: May 5, 1818
Died: March 14, 1883

Question 5

Marx also believed in:

Answer 5

• The labour theory of value to explain the relative difference in market prices
• And he developed the theory of historical materialism

Question 6

Marx’s theories

Answer 6

• inspired by classical political economists: Smith, Ricardo
• He has his own branch, Marxian economics, which are not favoured
• Mark says ideas impacted communist projects = USSR, China, Cuba

Question 7

Marx’s 2 pointed flaws of capitalism

Answer 7

1. He chaotic nature of free market competition.
2. Extraction of surplus labor.

Question 8

Marx’s Prediction

Answer 8

Capitalism eventually destroys itself as more people relegated to work and class status, and as in a quality rose in competition with lead the rate of corporate profits to zero. This would lead to a revolution war production would be turned over to be working class as a whole.

Question 9

Marx’s arguments:

Answer 9

1) Capitalists: Owners organize production process and own means of production such as factories, tools, and raw materials. And entitled to any profits

2) labour (larger class): Labourers don’t own or have any claim to production means. The finished products they work on or any profits from product sales, instead labour works only in return of monetary wage. Marx argued this arrangement EXPLOITED WORKERS

Question 10

Exploitation is the reason employers generated

Answer 10

PROFIT. Extract a full days worth of effort/production from workers but only pay small fraction of value as wages.
- Marx termed it: “surplus value”

Question 11

Labour theory of value

Answer 11

• Marx believe in LTV to relative differences in market prices. The value of produce economic codes can be measured objectively by the average number of labour hours required to produce it. (Ex. Table is 2 hours to make and chair is 1, table is 2x more valuable than chair)

Question 12

Marx’s conclusion about capitalism

Answer 12

S were under paying an overworking, and therefore exploiting labourers to drive down the cost of production

Question 13

Conclusion of Marx’s conclusion

Answer 13

Marx’s answer approved incorrect later Economus develop subjective theory of value. The simplest session showed weakness of labor, theories, logic, and assumptions. Marx unintentionally helped fuel revolution in economic thinking.

Question 14

Historical materialism

Answer 14

Society at any time pointe is ordered by technology used in production under industrial capitalism. Society is so ordered with capitalists organizing labour in factories are offices were they’re working for wages

Question 15

Main theory

Answer 15

Hey series on communism and capitalism form the basis of Marxism. The key theories critique of capitalism and shortcomings: he thought capitalistic system will inevitably destroy itself because of oppressed workers, and they would ultimately overthrow owners to take control of me to fraction themselves, ushering in a classless society

Question 16

Marxism vs communism

Answer 16

• marxism: system of socioeconomic economic. Mainly concerned with battle between working class and ownership class and favours communism and socialism over capitalism.
• Communism: form of economic production, and extends to GOVT or political movements