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26 Cards in this Set
- Front
- Back
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Market System, role of government (minimal)
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-Prevent fraud and coercion
-Establish a medium of exchange (money) -Provide basic trans. and comm. networks -Define/protect property rights -Enforce exchange agreements (contracts) |
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Market Miracles
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#1 Free Exchange
#2 Comparative Advantage and specialization #3 Equilibrium Price #4 Competition #5 Profits #6 Miracles 1-5 lean more on SELF INTEREST than VIRTUE |
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Market Miracle #1
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#1 Free Exchange
-both parties better off by trade --different "opportunity costs" (value of the next best alternative) --law of comparative advantage (every individual can produce at least one good or service at a lower opportunity cost than others.) |
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Market Miracle #2
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#2 C.A. and specialization
-full/optimal employment of resources -widest possible gains from exchange --produce more goods w/ same workers -economic interdependence (less war when we move towards capitalism--people trade & interact freely) |
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Market Miracle #3
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#3 Equilibrium price
-prices will naturally move to a point where buyers want to purchase the same amount that sellers wish to sell (law of supply and demand) |
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Law of Supply
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as the price of a good or service RISES, businesses will produce MORE of that good
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Law of Demand
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as the price of a good or service RISES, individuals will buy LESS
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Market Miracle #4
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#4 Competition
-no single seller or buyer has significant influences on price (no monopolies) -goods and services constantly get better, or cheaper, or both "invisible hand" |
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Market Miracle #5
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#5 Profits
-excess of revenue over costs -affected by changing tastes and events -rise--attract industry -fall--firms exit |
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Market Miracle #6
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#6 Miracle 1-5 lean more on self interest than virtue
-"every individual is led by an invisible hand" --Adam Smith "wealth of Nations" ECONOMIC SYSTEMS BASED ON SELF INTEREST GENERALLY WORK BETTER THAN SYSTEMS BASED ON CONCERN FOR PUBLIC GOOD. |
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Why did founders choose capitalism?
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Freedom
Efficient Gives rise to the American Dream Doesn't require any virtue?? NO |
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Articles of Confederation
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-“Each state retains sovereignty”
---Power to make final decisions, free from external influence -“Firm league of friendship” -Partial success |
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Weaknesses of the A of C
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-Anarchy between states
---no national exec. or court; non-binding on states ---Interstate trade, Foreign policy, Defense, Money -Tyranny within some states ---Shays rebellion -Amendment-proof |
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Virgina Plan
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-National Judiciary
-Single National Exec. ---Cong. impeachment -National Congress ---Two Branches ---Proportional Rep. ---Right to legislate where “States are incompetent” ---Veto over state legislation NATIONAL SOVEREIGNTY |
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New Jersey Plan
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-No Provision
-National Exec. Council ---Maj. of Governors -Nation Congress ---Single Body ---Equal State Rep. ---Limited scope of legislation STATE SOVEREIGNTY |
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Republican Problem
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Giving government enough power to prevent anarchy but not so much as to establish tyranny
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Slavery Compromise
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-3/5ths clause
-Non-interference of slave trade until 1808 -Fugitive Slave Law |
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Ratification
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Establishing consent
-Original consent ---Liberal versus simple democratic theory ---State conventions -Periodic or continuing consent ---Elections ---The amendment process (article 5) ---Right to leave |
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Anti-federalist's complaint about the Constitution
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-National gov. too big, distant, strong
-No Bill of Rights -Fails to promote religion and public duty |
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Democratic-Republican Party
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Jefferson/Madison
-Small, rights-protecting government/self-reliant individuals -France -Rural America—agriculture -NARROW int. of const. powers |
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Federalist Party
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-Hamilton/Adams
-Great empire dominate West. hem. compete w/European powers -England -Big cities—manufacturing -Broad int. of const. powers --Necessary/Proper ---National Bank ---Assume debt ---Tariffs |
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Structure: US System
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-Single representative districts
--Plurality ---“winner takes all” -Separate election for Pres. --Requires “majority” of electors -Elect. at fixed intervals Two parties dominate |
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Structure: Parliamentary system
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-Proportional rep. of parties
-Leg. elects PM --Often requires a coalition -Leg. calls elections Small parties form and have significant influence |
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Missouri Compromise of 1820
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-Maine comes in free
-Territory north of Missouri’s southern border comes in free -Missouri comes in slave By 1860 -M.C. repealed by Kan-Neb. Act and Dred Scott -Sectionalism overwhelms const. structure |
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Gettysburg Address
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Nov. 1863
“Four score and seven years ago” -Declaration of Independence -Bible TRANSFORMS THE WAR INTO A SACRED BATTLE FOR HUMAN FREEDOM! |
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Reconstruction—Lincoln
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13thAmendment
Second Inaugural Generous terms of surrender Pardon any confederate who would swear to support Constitution and Union States with 10% of electorate taking oath of loyalty to Const. officially recognized |
