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47 Cards in this Set

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What economic policy did Adam Smith reject or react against in the 1770s?
An economic policy in which the monarch of the mother country controls all trade with the dependent colonies.
What book did Enlightenment economist and philosophe Adam Smith write in 1776?
The Wealth of Nations
He felt that generated Wealth for an Entrepreneur generated Wealth for the Entire Nation.
What did mercantilist nations view as the only signs of a wealthy powerful nation ?
Gold and silver bullion; a large trade surplus.
Spain failed to invest its wealth or develop other forms of wealth. They felt this kind of bullion and balance of trade was best.
What did the old feudal manor system view as wealth in the Middle Ages?
Your local lord owned this. He would grant it as a fief in exchange for loyalty, labor or military services.
What economic system did Adam Smith believe was the best?
a/k/a free market system or laissez faire
What was the name for a person who invested/ risked his own money in a business to make a profit?
French word for businessman.
What kinds of rules or laws were the physiocrats (economists) of the Enlightnment era searching for?
Natural aws.
The Enlightenment, following the success of Scientific Revolution, sought to find these kinds of laws for all human fields or disciplines.
What is the term for capitalism or free market in which the government does not interfere in business by using tariffs, regulations, etc.?
Laissez Faire
French term - hands off or let the people decide.
What did Adam Smith believe motivated all people in the marketplace?
Self Interest.
What was the Domestic or Putting Out System developed just prior to the Industrial Revolution?
The factor or investor took the raw materials and moved them from cottage to cottage for each stage of production. For the first time, labor was separated from capital.
Prior to this, one worker or family would accomplish all the steps of production and keep the profit.
What was the name for the building where all the steps of production were completed to make a manufactured good?
A factory
The building that arose in the Industrial Revolution.
What is the natural law"that states that when price goes up, the producer is willing to produce and sell MORE?
The law of supply.
One of the two laws that determine price.
What is the natural law that states when the price of a good or service goes up, the consumer is willing to buy fewer or less?
The law of demand.
One of the two laws that determine price.
Synonym for buyer.
Synonym for a seller who makes the goods.
Synonyms for the economic system where private individual buyers and sellers make independent decisions.
Free market, free enterprise, capitalism, laissez faire.
Adam Smith coined this famous phrase for the unseen natural pursuit of self-interest that would keep prices low as long as there was competition.
The invisible hand of self-interest.
Resources are guided to their most productive use through this pursuit.
Many buyers and sellers create this, which helps keep prices low and the market efficient.
The negatives of what revolution led Karl Marx and Friedrich Engels to write "The Communist Manifesto" in 1848?
The Industrial Revolution.
Karl Marx was critical of capitalism because it had created this polluting, mass production revolution.
What group of people were being exploited and kept from their fair share of profits?
The poor urban factory workers.
Those who earned wages from the industrialist.
What were the working conditions like that led Marx to condemn capitalism?
Low pay, dangerous equipment, long hours, child labor, polluted cities.
Industrial Revolution, abuses of
What are utopian experiments?
In the mid 1800s, many groups tried to create perfect societies and looked at group ownership of property or shared ownership.
Geneva NY; the Shakers; The Roycrofters; Owens; and others made attempts to create perfect little societies. Many were socialist.
According to Marx, what should happen to all private property in a communist revolution?
It should be abolished.
Communism is a form of what kind of economic model?
Command or planned economy.
The one in which the government decides.
What did Karl Marx say was the HISTORY OF all previous societies?
Class struggle.
Lord v. Serf, Guildmaster v. Apprentice, Pharoah v. Slave are some examples.
What did Karl Marx call the poor abused factory worker?
The Proletariat.
Rhymes with Lariat.
What did Karl Marx call the wealthy entrepreneurial or industrial class?
The Bourgeoisie.
What did Karl Marx label the difference between the costs of production and the price something was sold at?
Communist talk for profit, in a way.
Who got all the Surplus Value according to Marx communist ideas?
The rich capitalist or the bourgeoisie.
The communist name for the rich
What did Marx say would one day happen when the workers realized they were being exploited and had had enough?
There would be a REVOLUTION and it would spread worldwide throughout all industrial nations.
What government would be temporarily formed after the communist revolution?
a dictatorship of the proletariat
the workers would form this.
What would happen to all private property?
It would be abolished.
Means gotten rid of.
What is the term for when the state or government seizes private property?
Communist term.
Where did Marx predict the first communist revolutions would occur?
In Industrialized nations like Britain and the USA.
He was wrong.
Where did the first communist revolutions actually take place?
In agrarian nations such as Russia (1917) and China (1949).
Nations where most people were peasant farmers.
What would one day happen to the dictatorship of the proletariat once everything was divided up and society became classless?
The state (govt) would "wither away" and die. There would be a classless society or worker's paradise.
This didn't happen.
What giant study of capitalism (critical of it) did Karl Marx begin and Friedrich Engels have to finish after Marx died?
Remember, just because he said it in the title doesn't mean he liked it.
What would motivate workers in the communist state?
Idealism - devotion to communist ideology and ideals.
How would communists decide on division of property?
From each, according to his ability, to each, according to his needs.
From and to are in this sentence. It means you'd get what you need.
Name two weaknesses of laissez faire capitalism.
The tendency to form monopolies or trusts without government regulation/intervention.
It creates a gap between the rich and (many) poor.
The boom and bust cycles (without government intervention).
What are the weaknesses of Communism?
There are no financial INCENTIVES to work hard (you don't get rewards for working hard). Tends to become totalitarian. The state doesn't tend to wither away and it tends to stay a dictatorship. Members of the Comm. Party are a privileged class.
Most communist rewards are ideological.
Where did Marx predict wrongly?
That the communist revolutions would occur in industrialized nations. That industrialized, capitalist nations would not change and improve the condition of the worker.
Occurred in Agrarian Nations instead.
Who supported laissez faire, the idea that government should NOT interfere in big business.
Adam Smith
What did communist philosopher Karl Marx call the rich industrialists and upper middle class people who kept all profits for them-selves (surplus value)?
Adam Smith is considered the father of
Although this system has always existed, he was the first to observe and write about it.
Karl Marx idescribed his radical utopian ideas known as _____ in 1848.