Unit 3: Classical Liberalism Flashcards
1
Q
Economic System
A
- the structure by which resources are allocated, goods are produced, and services are distributed within a society.
2
Q
Private Property
A
- legal ownership of resources by individuals themselves or non-governmental entities, granting exclusive rights to use, control, and transfer the property
3
Q
Public Property
A
- resources and assets that are owned and managed by the government or community as a whole, rather than by private individuals or entities.
- These resources are typically intended for use and benefit of the general public, such as public parks, roads, and government buildings
4
Q
Mercantilism
A
- emphasized maximizing exports and minimizing imports to accumulate wealth, often through state intervention, tariffs, and the acquisition of colonies to secure resources.
5
Q
Scarcity
A
- when there aren’t enough resources (limited) to meet all the unlimited wants and needs of a society
6
Q
What do all economic systems face and aim for
A
- Long term prosperity
- satisfy wants and needs of people
- deal with scarcity
- utilitarianism (Mill) - the collective or government should do things that make people happy
7
Q
Principles of Individualism / Liberalism
A
- Rule of law
- individual rights and freedom
- private property
- economic freedom
- self-interest
- competition
8
Q
Principles of Collectivism
A
- Collective interest
- adherence to collective norms
- public property
-economic freedom - co-operation
- collective responsibilities
9
Q
Physiocrat
A
- Group of french economists who believed that agriculture was the source of wealth and that the products should be highly prices
10
Q
when did mercantilism start? who had benefits
A
- Before free-market
- monarchs used it to benefit them
11
Q
Supply
A
quantity of a good or service that producers are willing to offer for sale at various prices
12
Q
Demand
A
- quantity of a good or service that consumers desire to buy at various prices
13
Q
Profit
A
- financial gain that occurs when the revenue generated from the sale of goods or services exceeds the total costs incurred in producing those goods or services
14
Q
Adam Smith
A
- Limited Government
- People working for themselves will increase the wealth of the nation (invisible hand)
15
Q
Did Smith favour competition or cooperation. why
A
- competition
- he suggested that increased competition among producers and consumers would allow for better products and lower prices for all
16
Q
explain the supply and demand curve graph
A
- p=price
- q= quantity
-d= demand - s = supply
- Prices and products are determined by the demand of the product.
- demand up price up. demand down price down
17
Q
Profit snd self-interest by smith
A
- profit encouraged people to take risk
- investments to assets or products generate potential profit
- larger profit makes entrepreneurs more likely to invest
- efficiency should be increased to produce more profit
- capitalists compete with each other for whoever has better efficiency and helps with profits
18
Q
how is competition good by smith
A
- helps maximize profits
- businesses compete with each other when it comes time efficiencies of a product therefore whoever has the best gets more profit than the other
19
Q
what did smith say about government intervention in the economy
A
- limited BUT they should only be there ti prevent monopolies, oligopolies, cartels from forming
20
Q
what did smith think about unemployment
A
- necessary for economy. not too much not too less
- access to cheap labour because many people are willing to do jobs even at low pay
- (those who have worked for a long time want to demand wage raise but can be fired and an u employed can come and work without asking for the raise)
- advancement of the economy as the money is for the business not the workers
21
Q
consumer sovereignty
A
- consumers have the power to decide the market.
- what to make and what it cost
22
Q
monopoly
A
- when one conpany completely controls a specific product
- full power on price
23
Q
oligopoly
A
- market is dominated by a group of people only
24
Q
cartel
A
- a group of producers who actively control supply and price of a trade, good, service
25
Q
anti-combine laws
A
- laws to help prevent oligopoly, cartel, monopoly
- government step-in
- no free market
26
Q
traditional economy
A
- A traditional economy is an economic system where economic decisions are based on customs, traditions, and cultural beliefs rather than market forces.
- In a traditional economy, production methods are often passed down from generation to generation
27
Q
what were developments of the industrial revolution
A
- human labour to machine
- rural to urban society
- ## increase in production
28
Q
labour unions
A
- are organizations formed by workers to protect their rights and interest in the work place
- advocates for better working conditions, fair wages, and workers right
29
Q
Was education important in the economy?
A
- yes
- government paid for the education which gets them more involved in economy
30
Q
nouveau riche
A
- the new wealthy elite of the industrial revolution
31
Q
the gilded age
A
- late 19th century USA
- massive economic growth and mass immigration from Europe to the USA
- but also extreme poverty and inequality
32
Q
John Stuart Mill
A
- acknowledge the struggle between freedom and authority
- tyranny of the majority ( majority of population can dominate the minority)
- viewed individuals can be free as long as it does not harm anyone
- strong advocate for freedom of speech
33
Q
theodore Roosevelt
A
- used government control to help the poor (at that time government focused on wealth so he believed against it)
- supports poor and the workers
- square deal (labour and capital must be treated fairly)
34
Q
what was square deal and whos idea was it
A
- theoroee roosevelt
- balance between capital and labour
- fair treatment for all workers, consumers, and business owners
- equality for all
35
Q
What did william taft propose
A
- Sherman Anti-Trust-Act to prevent monopolies
- fair competition
- protect consumers by ensuring that businesses are fair
36
Q
socialism
A
- government control is necessary ; protection of the group is more important than anyone individual
- rejects classical liberalism
- public ownership and economic equality
- generally refers to any ideology that believes resources are best controlled by a national government
37
Q
____ is a reaction to — liberalism
A
- socialism
- classical
38
Q
robert owen
A
- He believed in the idea of utopian socialism and advocated for workers’ rights, education, and social welfare.
- utopian socialist
- industrialist
39
Q
charles fourier
A
- french philosopher
- founder of utopian socialism
- credited with the word feminism
- said that poverty is the principle cause of disorder in society
40
Q
marxism
A
- communism
- worldwide revolution necessary to remove unequal treatment of the proletariat (workers)
- classless society
41
Q
friedrich engels and explain his idea to communist manifesto
A
- communist manifesto
- abolition of private property
- income tax (more you make the more you pay)
- state controls banks
- equal requirements of work for all
- free education to all members of society
42
Q
stages of communism
A
- increased unemployment and lower wages leads to a revolution
- establishment of a dictatorship of the proletariat
-shared wealth and resources = classless society
-
43
Q
vladimir lenin
A
- applied Marxism in russia
- created the soviet union
- applicate marxism and made it known as leninism
44
Q
Utilitarianism who believed on it
A
- the collective or government should do things that make people happy
- Stuart Mill
45
Q
Utilitarianism who believed on it
A
- the collective or government should do things that make people happy
- Stuart Mill
46
Q
what is sherman anti trust
A
prevent monopolies
