Econ Test 2 (STUDY GUIDE)

How did the Mercantilist system develop in Europe?

As the nation-states sought to expand their territories and their power, they needed militaries, navies, and lots of raw materials. Needless to say, the most attractive resources to a growing empire were precious metals like gold. To get gold, the Western European countries either needed to conquer foreign territories or trade with them—or both. And so began the Mercantilist period of Western European history.

What is the Communist ideal, according to Marx & Engels?

Communist ideal could materialize: all government apparatus would cease to exist and all property would be held communally amongst all the workers of the world who would coexist peacefully. As Marx would later say, this Communist society would require "from each according to his ability" and give "to each according to his need." No government required.

What is the root of Marx & Engels' version of "Communism?"

Engels also called this system "Scientific Socialism," because Marx's theory was based on a supposedly scientific understanding of history rooted in a theory of dialectical materialism.

How did the feudalist system answer the central economic questions?

In a feudal system, the lord essentially answered the first central economic question, determining what would be produced and how it would be produced, distributed, and consumed. The lord was the government and the government made all the economic decisions, meaning the lord answered the second central economic question also

What questions does a society ask about production, distribution, and consumption?

Questions about production that a society might ask are: o What goods and services should be produced in a society? o What combination of the factors of production should be used to create goods and services in the society? o Which producers should produce which goods and services in a society? o How much of each good or service should be produced in a society? o At what price should producers sell their goods and services? o For all of the questions above is an underlying question: Who (individual or institution) should make these determinations? Questions about distribution that a society might ask are: o To whom should goods and services be distributed? o What methods of distribution (electronic, truck, air, sea, rail, etc.) should be used to distribute goods and services? o How should the information be disseminated to consumers about the goods and services? o What price should distribution be? o For all of the questions above is an underlying question: Who (individual or institution) should make these determinations? Questions about consumption that a society might ask are: o Who should consume which goods and services? o Which goods and services should be consumed? 2 o How much of each good or service should be consumed? o At what price should buyers consume goods and services? o For all of the questions above is an underlying question: Who (individual or institution) should make these determinations?

How did the feudal system develop in Europe in the Medieval period (Middle Ages)?

This system of protection in exchange for labor was known as the feudal system (or feudalism), and was the predominant societal structure throughout Western Europe in the Middle Ages (often called the Medieval period), which stretched from the fall of Rome to the beginning of the Renaissance in the 14th century.

How is Marx & Engels' view of Communism similar to the other "Socialistic" philosophies? How is it different?

To Marx and Engels, Communism was the socialistic movement that advocated the overthrow of the bourgeoisie by the proletariat in order to form a classless utopian society characterized by communal ownership of property, equal prosperity for all, and an eventual abolition of the state apparatus.

Where has Communism been attempted? What have been the results?

Together they attempted to develop a coherent working-class philosophy and a more effective organizational structure for the movement. As Marx would later say, this Communist society would require "from each according to his ability" and give "to each according to his need." No government required.

What feudalism's social structure?

feudalism), and was the predominant societal structure throughout Western Europe in the Middle Ages (often called the Medieval period), which stretched from the fall of Rome to the beginning of the Renaissance in the 14th century.

In this excerpt, what does Adam Smith say is the role of the "sovereign" (or government) in a free economy?

first, the duty of protecting the society from violence and invasion of other independent societies; secondly, the duty of protecting, as far as possible, every member of the society from the injustice or oppression of every other member of it, or the duty of establishing an exact administration of justice; and, thirdly, the duty of erecting and maintaining certain public works and certain public institutions which it can never be for the interest of any individual, or small number of individuals, to erect and maintain; because the profit could never repay the expence to any individual or small number of individuals, though it may frequently do much more than repay it to a great society.

What is a free market / free enterprise economic system? What are its benefits? Drawbacks?

individual citizens and businesses are generally free to conduct economic activities with little to no government intervention or oversight. In a free market system, the government maintains order and protects natural rights (to life and property primarily) and individual liberties, but otherwise leaves it up to individuals to conduct economic activities as they see fit.

What are the particular viewpoints of the Social Reformers?

is a name used to describe various "Socialistic" philosophies that believed in nonrevolutionary societal change—through the governmental system—to address issues of poverty, equality, and social prosperity. Unlike, the Utopians, the Social Reformers did not retreat from the larger social fabric to form separatist communes. They instead sought to address social inequalities, poverty, educational needs, etc by reforming government and promoting redistributive taxation policies. The Social Reformers were the 19th-century version of "social justice" advocates who sought to use the governmental power (not voluntary benevolence societies) to deal with social ills.

What are the particular viewpoints of Utopians?

not unlike the one regaled in Thomas More's Utopia. Like other "Socialistic" thinkers, Utopians had concerns with private property and, in general, they outright rejected it. Utopians were also not merely practical in their philosophies, they were radical, choosing to practice their philosophies by forming communities of like-minded individuals to live out the utopian ideal.

What were the various forms of "Socialistic" philosophies that pre-dated Marx's Communist Manifesto? How were they similar? How were they different?

the Utopians, and the middle class Social Reformers, and the Revolutionary Socialists.

What is the "spectre haunting Europe." (pg 14)

the spectre of communism. All the powers of old Europe have entered into a holy alliance to exorcise this spectre: Pope and Tsar, Metternich and Guizot, French Radicals and German police-spies.

What are the main characteristics of Marx & Engels' view of Communism?

was the socialistic movement that advocated the overthrow of the bourgeoisie by the proletariat in order to form a classless utopian society characterized by communal ownership of property, equal prosperity for all, and an eventual abolition of the state apparatus.

What is the purpose of studying political economy?

which is the study of how government, law, and culture interact with the various economic activities

What are the particular viewpoints of the Revolutionary Socialists?

who believed the problems in the working classes could only be addressed by an overthrow of the current social and governmental order. There were many Revolutionary Socialist movements in Europe, most notably in France during its revolutions, though most were short-lived. Marx & Engels address a few of these Revolutionary Socialist philosophies in The Communist Manifesto (calling them "Reactionary Socialism" not Revolutionary Socialism)