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8 Cards in this Set
- Front
- Back
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How does the capitalist system reward pursuit of self-interest? |
- Rewards personal initiative and work - No contribution, no reward - Taxes dedicated to military defence - No expense by the state in anything that could be provided by the market - Exploitation of means of production by those that control means of production. Can only worsen inequality |
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Why would labour be considered a fictitious commodity? |
- Dual position in capitalist system, labour power and consumption power - Labour under capitalist system occupies very different position (slave labour) - Ability of workers to withdraw, autonomy - Power of workers strengthened by TU's - Considered a commodity because of it's position in the circuit of capital |
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What is the role of consumption in modern societies? |
- Sale/purchase and use of goods/services - Chinese economy based on saving, UK economy based on strength of consumption - Mass consumption emerged since Fordism. Increased productivity and higher wages fund increased consumption, increasing production. - Consumption increasingly focused on personality and preference. Emotional link. - When consumption appears to be weaker, politicians incentivise borrowing through lower interest rates and increasing economic confidence |
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What is the economic role of the state? |
- Legitimation function. Army, police, justice system to justify its existence. Riots are fall of the state. e.g. management of territorial boundaries
Regulatory activities. Regulated markets. e.g governance of product markets avoiding monopolies Accumulation function. Relating to investments and allowing the economy to run smoothly etc. e.g. reproduction of labour, infrastructure. |
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Describe Fordism. |
- industrialist introducing new forms of production - through mass production more can be produced at a lower cost - encouraged mass consumption |
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Describe the division of labour. |
- Tasks monitored, data collected, finding more efficient ways to produce - Greater distance between the specialised parts of production and those who carry it out. Lack of holistic organisational cooperation. - Removes some worker identity, workers used to intervene in a variety of tasks. |
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What are the types of unemployment? |
Structural. Minors Frictional. Gap between education and the workplace, in between jobs Cyclical. Recession and expansion, depends on economic state. |
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GFK Confidence Barometer.
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Consumer confidence determines consumption which determines production. Confidence recovers after 2008 and collapses again in 2010. |
