Economic Systems and the United States
|
|
- Norman Hopkins
- 6 years ago
- Views:
Transcription
1 Economic Systems and the United States Mr. Sinclair Fall, 2016
2 Another Question What are the basic economic questions? Answer: who gets what, where, when, why, and how Answer #2: what gets produced, how much gets produced, for whom does it get produced? Should government be involved in answering these questions? 1. Yes absolutely 2. Nope, not at all 3. What is this government that you speak of?
3 What are "Economic Systems?" An economic system is the way a society uses its resources to satisfy its people's unlimited wants 1. Traditional economies: economic decisions based on customs and beliefs that have been handed down 2. Command economies: government makes allocative and production decisions 3. Market economies: based on individual choice and self-interest, "led by an invisible hand"
4 Traditional Economies In early times, all societies had traditional economies Advantages: clearly answers main economic question, little disagreement over economic goals Disadvantages: resistant to change, feature severe inefficiencies and underproduction
5 Command Economies In command economies, economic leaders determine what is produced, and how it is produced Systems where the leaders (usually the central government) make all of the decisions are called centrally planned economies Command economies resulted from the influence of Karl Marx Socialism (and communism...and democratic socialism) is an economic system that illustrates elements of central planning and governmental control
6 Before Command and Market Economies...There Was Mercantilism Mercantilism is a system of political economy that hinged on control of trade as a key to a nation's wealth and power Popular in Europe in 15th-18th century; followed feudalism Thomas Mun, Treasure by Foreign Trade (1664) Some tenets: nation maintains a positive trade balance, all raw materials be used for domestic manufacture, and that a nation's surplus be sold to foreign nations Viewed trade as a zero-sum game; economics could not maximize the common good Critiques of mercantilism came from Adam Smith, David Ricardo, David Hume and John Locke
7 Market Economies and Capitalism Free market economies/capitalism owe their origin to Adam Smith and The Wealth of Nations (1776) Smith argued that free market economies are more beneficial to societies, as well as more productive Concepts introduced and/or discussed include division of labour, money, opportunity cost, real vs. nominal prices, and market prices Capitalism: economic system based on private ownership of factors of production, and little or no governmental involvement Feature #1: private property rights Feature #2: limited government involvement Feature #3: voluntary exchange in markets Feature #4: competition, consumer's freedom of choice (consumer sovereignty) Feature #5: specialization (absolute vs. comparative advantage)
8 Market Economies and Capitalism, Part II Product market: market for goods and services stuff that is made Factor market: market for factors of production, including labour Items here are owned by individuals, such as his/her "ownership" of labour Circular flow model in market economies Advantages include freedom of choice, political freedom, and possibility of profit Disadvantages include no/poor mechanism for the provision of public goods and services, and inequality
9 Karl Marx, Excerpt from Communist Manifesto Hitherto, every form of society has been based on the antagonism of oppressing and oppressed classes. But in order to oppress a class, certain conditions must be assured to it under which it can, at least, continue its slavish existence. The serf, in the period of serfdom, raised himself to membership in the commune, just as the petty bourgeois, under the yoke of feudal absolutism, managed to develop into a bourgeois. The modern laborer, on the contrary, instead of rising with the progress of industry, sinks deeper and deeper below the conditions of existence of his own class. He becomes a pauper, and pauperism develops more rapidly than population and wealth. And here it becomes evident, that the bourgeoisie is unfit any longer to be the ruling class in society, and to impose its conditions of existence upon society as an over-riding law. It is unfit to rule because it is incompetent to assure an existence to its slave within his slavery, because it cannot help letting him sink into such a state, that it has to feed him, instead of being fed by him. Society can no longer live under this bourgeoisie. The essential condition for the existence, and for the sway of the bourgeois class, is the formation and augmentation of capital; the condition for capital is wage-labour. Wage-labour rests exclusively on competition between the laborers. The advance of industry, whose involuntary promoter is the bourgeoisie, replaces the isolation of the labourers, due to competition, by their revolutionary combination, due to association. The development of Modern Industry, therefore, cuts from under its feet the very foundation on which the bourgeoisie produces and appropriates products. What the bourgeoisie, therefore, produces, above all, is its own grave-diggers. Its fall and the victory of the proletariat are equally inevitable.
10 Karl Marx, Das Kapital, and Command Economies Centrally planned economies are those where the government make all economic decisions The writings of Karl Marx gave rise to socialism and command economies Marx wrote Communist Manifesto (1848) and Das Kapital (1867) as critiques of capitalism Identifies class struggles under capitalism as between those who own the means of production (bourgeoisie) and those who perform the labour (proletariat) Argued that the industrial system is based on the exploitation of workers
11 More on Command Economies Communism: extreme form of socialism featuring no private ownership of property and little or no political freedom Democratic socialism: form of socialism established through democratic processes Government owns basic industries; others are privately owned, and services including health care are centrally-planned Advantages: provide well for the sick and unable to work, government can produce items that may not earn profit in market economies Disadvantages: often misguided economic decisions, massive government bureaucracy, shortages, inefficient resource allocation, subordination of individual rights to the rights of the state
12 Command Economies Today There are no examples of pure command economies today People's Republic of China: gradual transition from command to free market economy Deng Xiaoping's market-based reforms still maintained state ownership of land, heavy industry, and influence in banking and financial sectors Socialist parties hold power in France, Venezuela, and other nations "Nordic model:" mixed-market economies of Nordic countries featuring generous welfare states Elaborate social safety net, including universal health care Strong property rights and contract enforcement Little product market regulation Astronomically high tax burdens, high government spending as a portion of GDP
13 Free Enterprise in the United States Capitalist systems are known as free enterprise systems because anyone is free to start a business In the US, government involvement is generally limited to protecting competition Key elements of free enterprise are open opportunity, legal equality, free contract, and profit motive Open opportunity, legal equality, and free contract are the legal rights built into the free enterprise system Profit works as an incentive to enter the marketplace
14 Producers, Consumers, and the Government: Resource Allocation The mixed economy of the US can be considered a modified free enterprise economy: enterprise system with some government involvement In the US economy, government plays role of both producer and consumer Resource (factor) market: government is consumer and spends to "buy" goods and factors of production, such as labour Product market: government is a producer, providing goods and services to households & businesses, and collecting money in the form of taxes Government employment at all levels is roughly 22 million
15 Market Failures and the Role of the Government, Part I: Public Goods Market failure: condition where markets produce an inefficiency, or do not result in the optimal allocation of resources Market failures often occur in markets with one or few buyers/sellers (monopolies), in the case of an externality, or in the market of a public good Public good: a good that is consumed by the public as a whole (one example of a market failure) 1. Individuals cannot be excluded from the consumption of a public good 2. One person's enjoyment of the good does not diminish the enjoyment of others The problem of free riders: a person who does not pay for a good, but enjoys the benefit of the good Solution: public good is provided by the government, not privately Governments charge taxes and provide public goods
16 Market Failures and the Role of the Government, Part II: Externalities Externality: a side effect of a transaction that affects a party who is neither the buyer nor the seller Positive externality: someone who receives an unintended benefit from the transaction Negative externality: someone who receives an unintended consequence of the transaction, or pays an unintended cost Role of the government: reduce negative externalities, encourage positive externalities Adjusting for negative externalities: imposing fines for pollution Examples of increasing positive externalities: tax credits for electric car purchases Subsidy: a payment that covers the cost of a transaction that is in the best interest of the public)
17 Market Failures and the Role of the Government, Part III: Imperfect Competition Certain markets may become noncompetitive as a result of collusion, resulting in either one or few buyers (monopsony/ oligopsony) or one of few sellers (monopoly/oligopoly) As a result, supply can be artificially restricted in order to keep prices higher and supply lower than at equilibrium The government's role here is to ensure that markets remain competitive Sherman Antitrust Act, 1890 Clayton Antitrust Act, 1914
Economic Systems and the United States
Economic Systems and the United States Mr. Sinclair Fall, 2016 Traditional Economies In early times, all societies had traditional economies Advantages: clearly answers main economic question, little disagreement
More informationEconomic Systems and the United States
Economic Systems and the United States Mr. Sinclair Fall, 2017 What are "Economic Systems?" An economic system is the way a society uses its resources to satisfy its people's unlimited wants 1. Traditional
More informationEconomies in Transition Part I
Economies in Transition Part I The most important single central fact about a free market is that no exchange takes place unless both parties benefit. -Milton Friedman TYPES OF ECONOMIC SYSTEMS 2 Economic
More informationManifesto of the Communist Party
Karl Marx and Frederick Engels Manifesto of the Communist Party 1848 A spectre is haunting Europe -- the spectre of communism. All the powers of old Europe have entered into a holy alliance to exorcise
More informationEconomics has been defined as the study of how people respond to incentives.
Unit 1 Notes Incentives Economics has been defined as the study of how people respond to incentives. An incentive is a factor that motivates someone to behave in a certain way. Incentives Positive incentives
More information* Economies and Values
Unit One CB * Economies and Values Four different economic systems have developed to address the key economic questions. Each system reflects the different prioritization of economic goals. It also reflects
More information11/7/2011. Section 1: Answering the Three Economic Questions. Section 2: The Free Market
Essential Question Chapter 6: Economic Systems Opener How does a society decide who gets what goods and services? Chapter 6, Opener Slide 2 Guiding Questions Section 1: Answering the Three Economic Questions
More informationCOMPARATIVE ECONOMIC SYSTEMS: PAST, PRESENT, AND FUTURE BEFORE YOU BEGIN
Name Date Period Chapter 19 COMPARATIVE ECONOMIC SYSTEMS: PAST, PRESENT, AND FUTURE BEFORE YOU BEGIN Looking at the Chapter Fill in the blank spaces with the missing words. Wrote of and Wealth of Nations
More informationUnit 1: Introduction to Economics Chapters 1 & 2
Unit 1: Introduction to Economics Chapters 1 & 2 What is a market? Any place or method used by buyers and sellers to exchange goods and services. What kind of market system is used in the United States?
More informationECON 1000 Contemporary Economic Issues (Summer 2018) Economic Systems: Capitalism versus Socialism
ECON 1000 Contemporary Economic Issues (Summer 2018) Economic Systems: Capitalism versus Socialism Relevant Readings from the Required Textbooks: Chapter 3, Economic Systems: Capitalism versus Socialism
More informationCommunism. Marx and Engels. The Communism Manifesto
Communism Marx and Engels. The Communism Manifesto Karl Marx (1818-1883) German philosopher and economist Lived during aftermath of French Revolution (1789), which marks the beginning of end of monarchy
More informationECONOMIC SYSTEMS METHOD USED BY A SOCIETY TO PRODUCE AND DISTRIBUTE GOODS AND SERVICES
ECONOMICS ECONOMIC SYSTEMS METHOD USED BY A SOCIETY TO PRODUCE AND DISTRIBUTE GOODS AND SERVICES THREE ECONOMIC QUESTIONS WHAT GOODS AND SERVICES SHOULD BE PRODUCED? HOW SHOULD THEY BE PRODUCED WHO CONSUMES
More informationLaissez-Faire vs. Socialism Who is responsible?
Laissez-Faire vs. Socialism Who is responsible? Warm-Up In your groups discuss the following question: Should the government be responsible in regulating (controlling) businesses? If not, why? If so, how
More information1. STUDENTS WILL BE ABLE TO DEFINE WHAT AN ECONOMIC SYSTEM IS
LIGHTHOUSE CPA SOCIAL SCIENCES DEPARTMENT AP ECONOMICS STUDY GUIDE # 3 - ECONOMIC SYSTEMS CHAPTER LEARNING OBJECTIVES STUDENTS WILL BE ABLE TO DEFINE WHAT AN ECONOMIC SYSTEM IS STUDENTS WILL BE ABLE TO
More informationBell Ringer. What do you know about the differences between and?
Bell Ringer What do you know about the differences between and? Objectives 1. Identify the three key economic questions that all societies must answer. 2. Analyze the societal values that determine how
More informationNotes on Charles Lindblom s The Market System
Notes on Charles Lindblom s The Market System Yale University Press, 2001. by Christopher Pokarier for the course Enterprise + Governance @ Waseda University. Events of the last three decades make conceptualising
More informationECONOMIC SYSTEMS AND DECISION MAKING. Understanding Economics - Chapter 2
ECONOMIC SYSTEMS AND DECISION MAKING Understanding Economics - Chapter 2 ECONOMIC SYSTEMS Chapter 2, Lesson 1 ECONOMIC SYSTEMS Traditional Market Command Mixed! Economic System organized way a society
More informationUnit 1: Fundamental Economic Concepts. Chapter 2: Economic Choices and Decision Making. Lesson 4: Economic Systems
Unit 1: Fundamental Economic Concepts Chapter 2: Economic Choices and Decision Making Lesson 4: Economic Systems 1 Your Objectives After this lesson you should be able to: 1. Describe the characteristics
More informationBusiness Ethics Concepts & Cases
Business Ethics Concepts & Cases Manuel G. Velasquez Chapter Three The Business System: Government, Markets, and International Trade Economic Systems Tradition-Based Societies: rely on traditional communal
More informationKarl Marx ( )
Karl Marx (1818-1883) Karl Marx was a German philosopher, economist, sociologist and revolutionary socialist. Marx s theory of capitalism was based on the idea that human beings are naturally productive:
More informationCentral idea of the Manifesto
Central idea of the Manifesto The central idea of the Manifesto (Engels Preface to 1888 English Edition, p. 3) o I. In every historical epoch you find A prevailing mode of economic production and exchange
More informationCHAPTER 2: SECTION 1. Economic Systems
Three Economic Questions CHAPTER 2: SECTION 1 Economic Systems All nations in the world must decide how to answer three economic questions about the production and distribution of goods. (See Transparency
More informationCHAPTER 10: Fundamentals of International Political Economy
1. China s economy now ranks as what number in terms of size? a. First b. Second c. Third d. Fourth 2. China s economy has grown by what factor each year since 1980? a. Three b. Five c. Seven d. Ten 3.
More informationSince this chapter looks at economics systems and globalization, we will also be adding Chapter 15 which deals with international trade.
Monday, January 30 Tuesday, January 31 Since this chapter looks at economics systems and globalization, we will also be adding Chapter 15 which deals with international trade. Three Economic Questions
More informationMarket Systems Focus: Capitalism and Free Enterprise
Market Systems Focus: Capitalism and Free Enterprise Traditional Economies: Survival! An economic system in which people produce and distribute goods according to customs or traditions handed down from
More informationHOLT CHAPTER 22. Section 1: Capitalism Section 2: Socialism Section 3: Communism HOLT, RINEHART AND WINSTON
CHAPTER 22 Section 1: Capitalism Section 2: Socialism Section 3: Communism Section 1: Capitalism Objectives: What are the four factors of production? In what way is a free-market economy an essential aspect
More informationECON 1100 Global Economics (Section 05) Exam #1 Fall 2010 (Version A) Multiple Choice Questions ( 2. points each):
ECON 1100 Global Economics (Section 05) Exam #1 Fall 2010 (Version A) 1 Multiple Choice Questions ( 2 2 points each): 1. A Self-Interested person A. cares only about their own well-being (and does not
More informationEconomic Systems. Essential Questions. How do different societies around the world meet their economic systems?
Economic Systems Essential Questions How do different societies around the world meet their economic systems? What are the advantages and disadvantages of each system? Terms to know: Economics Economist
More informationMagruder s American Government
Presentation Pro Magruder s American Government C H A P T E R 23 Comparative Economic Systems 200 by Prentice Hall, Inc. C H A P T E R 23 Comparative Economic Systems SECTION Capitalism SECTION 2 Socialism
More informationSoci250 Sociological Theory
Soci250 Sociological Theory Module 3 Karl Marx I Old Marx François Nielsen University of North Carolina Chapel Hill Spring 2007 Outline Main Themes Life & Major Influences Old & Young Marx Old Marx Communist
More informationRUSSIA FROM REVOLUTION TO 1941
RUSSIA FROM REVOLUTION TO 1941 THE MARXIST TIMELINE OF WORLD HISTORY In prehistoric times, men lived in harmony. There was no private ownership, and no need for government. All people co-operated in order
More informationCHAPTER 18: ANTITRUST POLICY AND REGULATION
CHAPTER 18: ANTITRUST POLICY AND REGULATION The information in Chapter 18, while important, is only tested on the AP economics exam in the context of monopolies as discussed in Chapter 10. The important
More informationThe difference between Communism and Socialism
The difference between Communism and Socialism Communism can be described as a social organizational system where the community owns the property and each individual contributes and receives wealth according
More informationChapter 2: Economic Systems Section 3
Chapter 2: Economic Systems Section 3 Objectives 1. Describe how a centrally planned economy is organized. 2. Distinguish between socialism and communism. 3. Analyze the use of central planning in the
More informationPHILOSOPHY OF ECONOMICS & POLITICS
PHILOSOPHY OF ECONOMICS & POLITICS LECTURE 4: MARX DATE 29 OCTOBER 2018 LECTURER JULIAN REISS Marx s vita 1818 1883 Born in Trier to a Jewish family that had converted to Christianity Studied law in Bonn
More informationSubverting the Orthodoxy
Subverting the Orthodoxy Rousseau, Smith and Marx Chau Kwan Yat Jean-Jacques Rousseau, Adam Smith, and Karl Marx each wrote at a different time, yet their works share a common feature: they display a certain
More informationChapter 1: Foundations of Government Unit 1
Chapter 1: Foundations of Government Unit 1 Purposes and Origins of Government The Functions of Government Anarchy a state without government and laws Why would people not want to live under this system?
More informationReflection & Connection Task
Reflection & Connection Task Crash Landing 5 Scenario You are flying over Polynesia. Plane crashes on Small Island. Only 40 survivors. Everyone is arguing. Scouts report that there are fruit, nuts, a few
More informationChapter 20: Historical Material on Merchant s Capital
Chapter 20: Historical Material on Merchant s Capital I The distinction between commercial and industrial capital 1 Merchant s capital, be it in the form of commercial capital or of money-dealing capital,
More informationIndustrial Rev Practice
Name: Industrial Rev Practice 1. A major reason the Industrial Revolution began in England was that England possessed A) a smooth coastline B) abundant coal and iron resources C) many waterfalls D) numerous
More informationMARXISM AND INTERNATIONAL RELATIONS ELİF UZGÖREN AYSELİN YILDIZ
MARXISM AND INTERNATIONAL RELATIONS ELİF UZGÖREN AYSELİN YILDIZ Outline Key terms and propositions within Marxism Marxism and IR: What is the relevance of Marxism today? Is Marxism helpful to explain current
More informationAdam Smith and Government Intervention in the Economy Sima Siami-Namini Graduate Research Assistant and Ph.D. Student Texas Tech University
Review of the Wealth of Nations Adam Smith and Government Intervention in the Economy Sima Siami-Namini Graduate Research Assistant and Ph.D. Student Texas Tech University May 14, 2015 Abstract The main
More informationThe Inequalities of. Wealth Distribution: its Economic and. Political Consequences. Dr David Rees
The Inequalities of Wealth Distribution: its Economic and Political Consequences Dr David Rees Wealth Distribution Exercise Your opinion on wealth distribution is based on what you think is 'fair' or 'unfair'
More informationProfessor Sen s Socialist Economy
Professor Sen s Socialist Economy In his 1981 book Poverty and Famines Professor Amartya Sen wrote: A socialist economy may not permit private ownership of the means of production, thereby rendering production-based
More informationSection 4 Notes Window panes
Term Picture 10 word max summary Answer questions at the end of the section. Section 4 Notes Window panes Laissez-faire Capitalism Utilitarianism Socialism Karl Marx Communism Unions Factory Act of 1883
More informationGlobalization & the Battle of Ideas. Economic Theory and Practice in the 20 th Century
Globalization & the Battle of Ideas Economic Theory and Practice in the 20 th Century Today s Discussion Brief Review Keynes Again With the Old White Guys? Keynes s World Hayak s World The Course of Globalization
More informationChapter 9: Fundamentals of International Political Economy
Chapter 9: Fundamentals of International Political Economy MULTIPLE CHOICE 1. International political economy can be defined as a. the international organizations such as the International Monetary Fund
More informationChapter Economic Issues and Concepts. In this chapter you will learn to. The Complexity of the Modern Economy. The Self-Organizing Economy
Chapter 1 Economic Issues and Concepts In this chapter you will learn to 1. Describe the market economy as a self-organizing entity in which order emerges from a large number of decentralized decisions.
More informationDevelopment Economics: the International Perspective. Why are some countries rich while others are poor?
Development Economics: the International Perspective Why are some countries rich while others are poor? * Objective: Given Theory of Development 4 Types of Economic Systems the student will distinguish
More informationCLASS AND CLASS CONFLICT
Karl Marx UNIT 8 CLASS AND CLASS CONFLICT Structure 8.0 Objectives 8.1 Introduction 8.2 The Class Structure 8.2.1 Criteria for Determination of Class 8.2.2 Classification of Societies in History and Emergence
More informationA 13-PART COURSE IN POPULAR ECONOMICS SAMPLE COURSE OUTLINE
A 13-PART COURSE IN POPULAR ECONOMICS SAMPLE COURSE OUTLINE By Jim Stanford Canadian Centre for Policy Alternatives, 2008 Non-commercial use and reproduction, with appropriate citation, is authorized.
More informationMARXISM AND INTERNATIONAL RELATIONS ELİF UZGÖREN AYSELİN YILDIZ
MARXISM AND INTERNATIONAL RELATIONS ELİF UZGÖREN AYSELİN YILDIZ Outline Key terms and propositions within Marxism Different approaches within Marxism Criticisms to Marxist theory within IR What is the
More informationChapter 6: Economic Systems. Economics: how people choose to use scarce resources in order to produce and buy the goods they want.
Chapter 6: Economic Systems Economics: how people choose to use scarce resources in order to produce and buy the goods they want. 3 Concepts of Economics: Goods (the something you want to buy) Capital
More informationOrganized by. In collaboration with. Posh Raj Pandey South Asia Watch on Trade, Economics & Environment (SAWTEE)
Posh Raj Pandey South Asia Watch on Trade, Economics & Environment (SAWTEE) Training on International Trading System 7 February 2012 Kathamndu Organized by South Asia Watch on Trade, Economics & Environment
More informationEconomic Theory: How has industrial development changed living and working conditions?
Economic Theory: How has industrial development changed living and working conditions? Adam Smith Karl Marx Friedrich Engels Thomas Malthus BACK David Ricardo Jeremy Bentham Robert Owen Classical Economics:
More informationECON 1100 Global Economics (Section 03) Exam #1 Fall 2009 (Version D) Multiple Choice Questions ( 2. points each):
ECON 1100 Global Economics (Section 03) Exam #1 Fall 2009 (Version D) 1 Multiple Choice Questions ( 2 2 points each): 1. The states that a person is more likely to take an action if its benefit rises and
More informationPlanning Activity. Theme 1
Planning Activity Theme 1 This document provides an example of a plan for one topic within Theme 1. This resource goes into much more detail than is required in the specification but it provides some background
More informationand government interventions, and explain how they represent contrasting political choices
Chapter 9: Political Economies Learning Objectives After reading this chapter, students should be able to do the following: 9.1: Describe three concrete ways in which national economies vary, the abstract
More informationLate pre-classical economics (ca ) Mercantilism (16th 18th centuries) Physiocracy (ca ca. 1789)
Late pre-classical economics (ca. 1500 1776) Mercantilism (16th 18th centuries) Physiocracy (ca. 1750 ca. 1789) General characteristics of the period increase in economic activity markets become more important
More informationPART II EARLY ECONOMIC SCHOOLS OF THOUGHT
PART II EARLY ECONOMIC SCHOOLS OF THOUGHT Mercantilism 4 Chapter Outline Mercantilism Factors that led to the spread of Mercantilism Theory and basic thoughts Policy Major beliefs Criticism 1 of 36 Preclassical
More informationNew Ideas in a New Society
Main Idea New Ideas in a New Society The Industrial Revolution inspired new ideas about economics and affected society in many ways. Content Statement 9/Learning Goal Analyze the social, political and
More informationThe Early Industrial Revolution Chapter 22 AP World History
The Early Industrial Revolution 1760-1851 Chapter 22 AP World History Beginnings of Industrialization Main Idea The Industrial Revolution started in England and soon spread to other countries Why It Matters
More informationUNIT 1: CAPITALISM DEFINED
What is Capitalism? UNIT 1: CAPITALISM DEFINED The 17 th and 18 th centuries introduced a new economic system called capitalism characterized by a new combination of institutions. Most economies today
More informationGlasnost and the Intelligentsia
Glasnost and the Intelligentsia Ways in which the intelligentsia affected the course of events: 1. Control of mass media 2. Participation in elections 3. Offering economic advice. Why most of the intelligentsia
More informationThe Marxist Critique of Liberalism
The Marxist Critique of Liberalism Is Market Socialism the Solution? The ruling ideas of each age have ever been the ideas of its ruling class. What is Capitalism? A market system in which the means of
More informationIntroduction to Economics
Introduction to Economics ECONOMICS Chapter 7 Markets and Government contents 7.1 7.2 7.3 7.4 7.5 7.6 Roles Markets Play Efficient Allocation of Resources Roles Government Plays Public Goods Problems of
More informationCHAPTER 3 THE CAPITALIST MARKET: HOW IT IS SUPPOSED TO WORK
CHAPTER 3 THE CAPITALIST MARKET: HOW IT IS SUPPOSED TO WORK draft 3, March, 2009 The American economy is a special case of capitalism. In order to understand how the American economy works, therefore,
More informationAdam Smith, The Wealth of Nations, 1776 The Flow of Money and Goods in a Market Economy
Who Decides What? In the process of answering the three economic questions, every society develops an economic system. An economic system [economic system: a society s way of coordinating the production
More informationSocial Science 1000: Study Questions. Part A: 50% - 50 Minutes
1 Social Science 1000: Study Questions Part A: 50% - 50 Minutes Six of the following items will appear on the exam. You will be asked to define and explain the significance for the course of five of them.
More informationChapter 2: The U.S. Economy: A Global View
Chapter 2: The U.S. Economy: A Global View 1. Approximately how much of the world's output does the United States produce? A. 4 percent. B. 20 percent. C. 30 percent. D. 1.5 percent. The United States
More informationSSWH 15 Presentation. Describe the impact of industrialization and urbanization.
SSWH 15 Presentation Describe the impact of industrialization and urbanization. Vocabulary Industrial Revolution Industrialization Adam Smith Capitalism Laissiez-Faire Wealth of Nations Karl Marx Communism
More informationECON 1100 Global Economics (Section 02) Exam #1 Spring 2009 (Version C) Multiple Choice Questions ( 2. points each):
ECON 1100 Global Economics (Section 02) Exam #1 Spring 2009 (Version C) 1 Multiple Choice Questions ( 2 2 points each): 1. The states that an action should be taken if and only if the additional benefits
More informationChapter 2. The Evolution of Economic Systems. Copyright 2011 Pearson Addison-Wesley. All rights reserved.
Chapter 2 The Evolution of Economic Systems Basic role of any economic system is to provide for people We spend most of our lives working And, sustenance is the most immediate necessity, So economic relationships
More information1. Free trade refers to a situation where a government does not attempt to influence through quotas
Chapter 06 International Trade Theory True / False Questions 1. Free trade refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from
More informationWorld History Chapter 25
World History Chapter 25 Renaissance Reformation Age of Exploration Scientific Revolution Enlightenment The Industrial Revolution starts in England and soon spreads to other countries. Plentiful natural
More informationImmanuel Wallerstein (b. 1930) dependency perspective modernization perspective
Immanuel Wallerstein (b. 1930) Received degrees from Columbia (Ph.D. in 1959) Has been on faculty of SUNY-Binghamton since 1976. Major work: The Modern World System (first volume in 1974) There have been
More informationThe Communist Manifesto: Annotations
Xavier University Exhibit University Library Prize Finalists for First Year Seminars Undergraduate 2017 The Communist Manifesto: Annotations Maggie Mahoney Xavier University - Cincinnati, mahoneym6@xavier.edu
More informationEconomic Perspective. Macroeconomics I ECON 309 S. Cunningham
Economic Perspective Macroeconomics I ECON 309 S. Cunningham Methodological Individualism Classical liberalism, classical economics and neoclassical economics are based on the conception that society is
More informationDefining poverty. Most people think of poverty in terms of deprivation lack of food, shelter, and clothing.
Poverty and Wealth Outline for today Poverty and inequality Types of economic systems and views on poverty (capitalism, socialism, mixed economies) Poverty and environmental degradation Overconsumption
More informationRational Choice. Pba Dab. Imbalance (read Pab is greater than Pba and Dba is greater than Dab) V V
Rational Choice George Homans Social Behavior as Exchange Exchange theory as alternative to Parsons grand theory. Base sociology on economics and behaviorist psychology (don t worry about the inside, meaning,
More informationDEMOGRAPHICS IN CANADIAN SOCIETY. Unit 2
DEMOGRAPHICS IN CANADIAN SOCIETY Unit 2 WHAT I M LEARNING TODAY Explore how Canada s diversity impacts how society functions Understand how money and power influence who is in control of society Explore
More informationB 3. THE PROPER ECONOMIC ROLES OF GOVERNMENT
B 3. THE PROPER ECONOMIC ROLES OF GOVERNMENT 1. Government, through a political process, is the agency through which public policy is determined and in part carried out. a) It is one of the means employed
More informationKarl Marx and Friedrich Engels: The Communist Manifesto (1848)
Karl Marx and Friedrich Engels: The Communist Manifesto (1848) Although it at first had little or no impact on the widespread and varied revolutionary movements of the mid-19th century Europe, the Communist
More informationAssembly Line For the first time, Henry Ford s entire Highland Park, Michigan automobile factory is run on a continuously moving assembly line when
Assembly Line For the first time, Henry Ford s entire Highland Park, Michigan automobile factory is run on a continuously moving assembly line when the chassis the automobile s frame is assembled using
More informationKarl Marx by Dr. Frank Elwell
Karl Marx 1818-1883 by Dr. Frank Elwell Note: This presentation is based on the theories of Karl Marx as presented in his books listed in the bibliography. A more complete summary of Marx s theories (as
More informationEssential Question: How did both the government and workers themselves try to improve workers lives?
Essential Question: How did both the government and workers themselves try to improve workers lives? The Philosophers of Industrialization Rise of Socialism Labor Unions and Reform Laws The Reform Movement
More informationECON 4270 Distributive Justice Lecture 10: Libertarianism. Marxism
ECON 4270 Distributive Justice Lecture 10: Libertarianism. Marxism Hilde Bojer www.folk.uio.no/hbojer hbojer@econ.uio.no 3 November 2009 Libertarianism Marxism Labour theory of value Exploitation of the
More informationBell Ringer: February 10(14), 2017
Announcements: 1: Adam Smith/Free Enterprise You need: 1: A Bell Ringer: February 10(14), 2017 1. Get out your notes over free enterprise and Adam Smith. 2. On those notes, write a summary of what we learned
More informationPOL 343 Democratic Theory and Globalization February 11, "The history of democratic theory II" Introduction
POL 343 Democratic Theory and Globalization February 11, 2005 "The history of democratic theory II" Introduction Why, and how, does democratic theory revive at the beginning of the nineteenth century?
More informationIndustrial Revolution: Reform. Key Concept 5.1 Industrialization and Global Capitalism Tuesday March 27, 2018
Industrial Revolution: Reform Key Concept 5.1 Industrialization and Global Capitalism Tuesday March 27, 2018 Capitalism An economic idea that promoted maximum profit through competition and investment
More informationChapter 9 Section 1. The Beginnings of Industrialization
Chapter 9 Section 1 The Beginnings of Industrialization Industrialization begins in Great Britain Took place between 1760 1840 Before the I.R. hands did most of the work By the mid 1700 s, began using
More informationWorld History Chapter 25
World History Chapter 25 Renaissance Reformation Age of Exploration Scientific Revolution Enlightenment The Industrial Revolution starts in England and soon spreads to other countries. Plentiful natural
More informationMonday, November 2 nd 7B Social Studies
Monday, November 2 nd 7B Social Studies Inquiry: What is communism? How does it compare with socialism, capitalism, and feudalism? Goal: After learning about communism and capitalism, students will be
More informationAntonio Gramsci. The Prison Notebooks
Antonio Gramsci The Prison Notebooks Ideologies in Dead Poets Society! How can we identify ideologies at work in a literary text?! Identify the imaginary relationship of individuals to their real conditions
More informationChapters 2 and 3 Do Video Games / The Media Cause Violence? Social Conflict Theory: Does Socioeconomic Status Cause Crime?
Chapters 2 and 3 Do Video Games / The Media Cause Violence? Social Conflict Theory: Does Socioeconomic Status Cause Crime? Figure 8.1 The Branches of Social Conflict Theory Marxist Thought Productive Forces
More informationReadiness Activity. (An activity to be done before viewing the video)
KNOWLEDGE UNLIMITED NEWS Matters Russia in Ruins: Can the Nation Survive? Vol. 2 No. 4 About NEWSMatters Russia in Ruins: Can the Nation Survive? is one in a series of NEWSMatters programs. Each 15-20
More informationFunctions of institutions X-institutions Y-institutions. ownership. Redistribution (accumulationconcordance-distribution)
a. New Balance of Redistribution and Market Institutions in Modern Russian Economy b. Economics or Area Studies c. Paper Sessions d. Svetlana Kirdina e. Institute of Economics, Russian Academy of Sciences,
More informationCh. 15: The Industrial Revolution
Ch. 15: The Industrial Revolution I. Understanding Economics a. The Three Economic Questions i. People have unlimited wants, but limited resources. ii. 3 basic questions: 1. What should be produced? 2.
More informationIndustrial Revolution
ECONOMIC SYSTEM Industrial Revolution During 1760-1820, a period of major industrialization occurred beginning in Britain and then spread throughout the world. New steam and water powered inventions made
More information5. Markets and the Environment
5. Markets and the Environment 5.1 The First Welfare Theorem Central question of interest: can an unregulated market be relied upon to allocate natural capital efficiently? The first welfare theorem: in
More information