Chapter 6- Economic Systems

Transitional economic system between capitalism and socialism

What does laissez faire mean?

Government is no longer necessary since everyone one is acting in the best interests of others

In the Wealth of Nations, what concept did Adam Smith refute?

Which of these is not a public good?

Adam Smith- Which of these is not a principle function of government?

Under which system does government not exist?

the government's acquisition of the ownership of major industries

Which of these is not one of the five points of mercantilism?

Author of Wealth of Nations, advocate of the invisible hand.

majority of ownership/decision-making with indiv. but gov't intervenes for egalitarian goals

condition experienced when a nation sells more goods than it purchases from foreign nations

idea that the gov't should leave the economy alone and allow the people to seek own profit

Marx- "Religion is the opium of the ...."

form of socialism: government is the central owner/decision-maker for the state

written in 1848 by Karl Marx & F Engels, set the foundation for centralized socialism

Nationalized businesses are given back to private stockholders

extreme capitalism-private citizens own all factors of production/make all economic decisions

Why is radical capitalism not scriptural?

In the 18th century, what did "liberal" mean

Marx- "The history of all hitherto existing society is the history of ..."

accumulation of gold and silver as national wealth, created by a favorable balance of trade

Which of these is not a strategy of mercantilism?

When did mercantilism end?

state's taking possession of those industries that are the cornerstones of the economy

private individuals own most of the factors of production/make most economic decisions

What was the root problem with mercantilism?

form of capitalism allowing the government only minimal ownership of resources and decisions

Adam Smith's ideal economic system?

nation under extreme state capitalism, taxes (high tax rate) widely used for social programs

a classless society, individuals take only what they need & contribute the rest

a central authority controls and makes economic decisions