Economics CH.6

3 disadvantages within centralized socialism

1. Outdated products or stolen technology 2. Mediocre workmanship producing faulty merchandise 3. Live either with shortages or an ever-growing black market

Two basic principles that scripture teaches about economic systems *essay?

1. Right to private ownership 2. Accountability for financial decisions

According to Adam Smith, what are the three principal functions of government?

1. To protect it's citizens from Foreign aggression 2. Protect the rights of it is from infringements by 3. To provide public goods

What is the five point program of mercantilism

1. exploration 2. Trade 3. Domestic manufacturing 4. Colonization 5. Alliances/treatise/conquest

In what year did mercantilism end in America

1776

What are public goods?

A good or service that benefits nearly all of a nations people

Author of the wealth of Nations

Adam Smith

The Father of Laissez- faire economics

Adam Smith

Which type of economic system is advocated in scripture however the results or criticized

Capitalism

economic system in which private individuals own most of the factors of production and make most economic decissions

Capitalism

Adam Smith's ideal economic system

Classic Liberal Capitalism

Government is no longer necessary since everyone is acting the best interest of others

Communism

What is communism seeking to address and what is one flaw of communism?

Communism tries to address the class struggles; flaw is assuming that man is naturally good.

Advantage of a capitalist economy

Higher standard of living

Author of communist manifesto

Karl Marx

"Leave us alone" or "let us alone"

Laissez-nous faire

Advantage of a socialist economy

Low unemployment rate

economic system that advocated the accumulation of gold and silver as national weath

Mercantilism

Transitional economic system between free markets and governmental ownership

Social Democracy

Which type of economic system is not advocated in scripture?

Socialism

economic system in which a central authority committee, or the people in common generally own the factors of production and make economic decisions

Socialism

Biggest difference between socialism and capitalism

Socialism emphasizes the government's power to make decisions whereas capitalism emphasizes the individuals right to make decisions

private ownership of businesses but with frequent governmental intervention

State Capitalism

Why are public goods necessary?

To keep affordable & to be consistently reliable

Economic system that leans toward capitalism but has extremely high taxes

Welfare state

What type of economic idea came in response to mercantilism

laissez fair liberalism

the government takes possession of key industries

nationalization

The government sells businesses back to private individuals

privatization