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Test 5 (4/11/17)
Terms in this set (25)
What is deficit spending?
spending more than is earned
What are characteristics of mercantilism?
- exporting more goods and services than is imported into a country
- hoarding gold and silver
- colonies designed to provide raw materials for the mother country
Who wrote "Inquiry Into the Nature and Causes of the Wealth of Nations"?
What tyoe of economic system does the the United States have?
capitalism, with some government intervention
What type of economic system stresses the freedom of private individuals to own the factors of production and to make economic choices?
How are the three central questions of economics decided in a communist country?
the government decides the answers to the central questions
What does Marx argue concerning capitalism?
capitalism leads to the mistreatment of workers and eventually revolution.
According to Marxist economic theory, hwhere will history inevitably lead society?
What factor makes communism impossible?
the depravity of mankind
What economic system did Marx see as the necessary steppingstone to communism?
dictatorship of the proletariat
What country attempted to achieve communism?
What leader instituted communism in China?
What problem is faced by the Chinese?
How did Marx view history?
History is a series of economic class struggles.
What are the reasons the USSR failed?
- wasted resources and no motivation for efficiency
- failure to provide for the needs of the citizens
- political favoritism and corruption
When was the Bolshevik Revolution that led to the USSR?
What is a characterist of democratic socialism?
an expensive welfare program
Where in the world has democratc socialism been tried the most?
What is not typical of a democratic socialist econom?
No private proerty at all
According to your book, what type of economic system does Japan have?
What is a charcteristic particular to the Japanese economy?
What are obstacles to economic growth and development of emerging market economies?
- frequent violence
- lack of order and rule of law
the government ownership of the means of production and the redistribution of goods for the welfare the entire society
Compare and contrast socialism, communism, and capitalism.
- lots of state-owned property
- little private production (mostly gov.)
- restricted market system with little competition
- welfare programs
- influenced by Karl Marx
- command economy
- all state-owned property
- government production of goods/services
- no market system (zero competition)
- welfare programs
- founded by Karl Marx
- has an end goal of a utopia
- privately-owned property
- privately-owned production
- market system with a lot of competition
- privately-owned healthcare, insurance, etc.
- strongly influenced by Adam Smith
Evaluate command economies as economic systems (especially from a Biblical worldview).
- EXAMPLES: USSR (failure), North Korea, Sweden
- Pure command economies are unrealistic and unsuitable for mankind
- too much wasted resources and fails to provide for the needs of the citizens
- they don't take into account man's fallen nature
- Socialism (pure form) allows for legal plunder, is false philanthropy, and plays God
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