unit 2a laissez-faire and classical liberalism

Question 1

What is the invisible hand?

Answer 1

Market forces naturally align self-interest with societal needs, shaping labor and production value.

Question 2

what is laissez faire capitalism?

Answer 2

belief that government should not intervene in economics

Question 3

what is supply and demand?

Answer 3

Market forces guide production to meet demand.

Question 4

what is competition?

Answer 4

Free market supporters see competition as a driver of hard work and efficiency.

Question 5

What is specialization?

Answer 5

individuals or groups focus on a specific task or skill, increasing efficiency and productivity.

Question 6

Who is John Stuart Mill?

Answer 6

-Alive during industrial revolution
-did not like factories abusing workers
-stressed the negative impacts of capitalism.

Question 7

what was the main thing Stuart believed in?

Answer 7

The harm principle

Question 8

What is the harm principle?

Answer 8

you can have rights as log as they do not interfere with someone else having their rights.

Question 9

what is individual choice?

Answer 9

you cannot justify laws that restrict individual choice because of what might be..

Question 10

What did Stuart say about freedom of speech?

Answer 10

He believed that it is more dangerous to silence someone from speaking than allowing them to express a controversial or offensive opinion

Question 11

John Stuart mill core beliefs on liberty

Answer 11

-individualism
-all have freedom (women 2)
-minimum govt intervention
-individual has sovereignty over themselves

Question 12

When can society intervene in Stuart’s idea?

Answer 12

-to stop harm to others
-to stop harm to ourselves
-to protect children

Question 13

What is a cottage industry?

Answer 13

People make things from their homes

Question 14

What is the origin of laissez faire economics?

Answer 14

-Industrial Revolution (1760-1840)
Britain’s traditional economy shifted to factory work in urban centres

Question 15

Why did the Industrial Revolution occur in Britain?

Answer 15

-rise of middle class
-britains government
-Britain large naval and merchant

Question 16

What was the rise of middle class in Britain?

Answer 16

More wealthy middle class who wanted goods

Question 17

What about Britain’s government advanced the Industrial Revolution

Answer 17

Parliamentary government and constitutional monarchy.
-parliament was filled with wealthy landowners and merchants who made laws for their benefit
-set up tarifs to protect their investments

Question 18

What about Britain’s large naval advanced the Industrial Revolution?

Answer 18

-Resources & trade (China/India)
-Coal, cheap labor, investment
-Innovation & capitalism (Enlightenment influence)

Question 19

Who are the physiocrats?

Answer 19

French philosophers opposed mercantilism, promoting free enterprise and minimal government interference.

Question 20

What is human agency?

Answer 20

Shape your own life

Question 21

What did the commercial and industrial revolutions do?

Answer 21

boosted the money economy, led to financial institutions, promoted free trade, funded factories, and enabled machine labor.

Question 22

What does the demand for better goods do?

Answer 22

-Creates larger wealthier population.
-Mass production
-Cottage to factory
-Need a lot of production and labour creating high factory expectations.

Question 23

What is the class system?

Answer 23

Categorizing people by definite status in society which permanently determines their relations to others.

Question 24

What is an aristocrat?

Answer 24

An aristocrat is a wealthy noble with political, economic, and military influence.

Question 25

What is a liberal democracy?

Answer 25

Political system based on: -equality -free elections -multiple political parties -legal decisions made by independent judiciary

Question 26

How did liberal ideas come about?

Answer 26

During the renaissance, new focus shifted on the individual -political influence for these new individualism can be seen by the American and French revolutions

Question 27

What did the new democracies embrace?

Answer 27

Ideas of philosophers like John Locke, who said that people should enjoy the right of life, liberty and property.

Question 28

What are some essential rights and freedoms the new individual based government included?

Answer 28

-govt participation -free of excessive govt intrusion -no one is above the law -protected and exercise individual rights -decisions on your own behalf

Question 29

What is classical liberalism?

Answer 29

Idea that stresses freedom, limited gov, individual rights and rationality/reason.

Question 30

What does classical liberalism support?

Answer 30

-Progress and advancement of society in political and economic ways -moral and social advancement

Question 31

What is the social contract?

Answer 31

Contract between people and govt. -people submit to laws as long as gov acts for what’s best for society -people consent to being governed

Question 32

What are 3 factors of mercantilism?

Answer 32

-govt regulation of business -monopolies accumulation by few

Question 33

What are 3 factors of capitalism?

Answer 33

-little or no govt regulations -competition -distribution of wealth across a wider range of society

Question 34

Key aspects of modern liberalism?

Answer 34

-equal opportunity for all -more people receiving rights -govt intervention to help those in need

Question 35

What are key aspects of classical liberalism?

Answer 35

-protecting freedoms of individuals in economic affairs -max rights for certain individuals (rich) -govt rules and regulations kept at a minimum, everyone’s acts on their own behalf

Question 36

When did classical liberalism end?

Answer 36

Early 1900s due to creating inequality