Econ Unit 1 Lesson 3

Afghanistan has a traditional economic system.

True

Which of these scenarios best represents a traditional economic system?

An Amish family sells the furniture they have made for generations.

Describe Karl Marx and Friedrich Engels' THREE main points in the Communist Manifesto.

-Capitalism features exploitation of workers (proletariat) by the owners. -World history is defined by class struggle. -There are inherent flaws in capitalism.

Select FOUR reasons why lack of incentive is one reason for the failure of communism.

-It hampers incentive and improvements. -The type of government normally associated with communism does not allow for personal freedom. -It is illegal to own property or business. -It often results in a lack of available goods.

Choose the TWO German philosophers who wrote Das Kapital and the Communist Manifesto.

-Karl Marx -Friedrich Engels

Select FIVE characteristics of a command economy.

-There is no private property or private business. -The government makes all economic decisions. -There is a totalitarian form of government. -there is limited availability of goods. -There is equal distribution of wealth.

__________ detailed the flaws of capitalism and how it could eventually end with a worker operated government with no social classes.

Das Kapital

Bartering is made easier through a double coincidence of wants.

False

Growing crops for profit is known as subsistence farming.

False

____ is a pamphlet of communist economic thinking that highlights the need for a new type of government and economy.

The Communist Manifesto

Bartering is a method of acquiring goods through trading that is typical of traditional economies.

True

the trading of one item to receive another item; creates a double coincidence of wants

barter system

an economy in which all decisions are made by the government with little to no input by the people

command economy

form of government that stemmed from the economic ideas of Karl Marx and preaches the idea that all citizens should be equal in wealth and status

communism

requires that, in a transaction, people have something the other wants and are willing to give it up for that other item

double coincidence of wants

a French word that explains the working class as written by Karl Marx and Friedrich Engels

proletariat

farming that is done simply to feed the family of the grower and not to sell goods for a profit

subsistence farming

a centralized government with near-complete control over the lives of citizens

totalitarian

system under which people within a community perform the same economic functions as their forefathers and ancestors

traditional economic system