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 Outdated products or stolen technology 2.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