1st Quarter, Unit 2: Economics Fundamentals (Ch
... 1st Quarter, Unit 2: Economics Fundamentals (Ch. 13; Ch. 15, sec. 1)
Be able to define or explain:
factors of production:
land (natural resources)
labor (human resources)
capital (factories, machines,
significance of scarcity in econ
Power Standards Vocab Sheet
... based on private ownership of the
means of production and their
operation for profit. Characteristics
central to capitalism include
private property, capital
accumulation, wage labor,
voluntary exchange, a price
system, and competitive markets.
Capitalism and socialism are somewhat opposing
... derived from labor, but people can earn more if they work harder. Means of production are controlled by
the workers themselves.
Philosophy of Socialism - From each according to his ability, to each according to his contribution.
Emphasis on profit being distributed among the society or workforce in ...
Economic Systems - Warren County Schools
... Robert Owen thought that for the good of all, society or the government, instead of
individuals, should own property and control industry
Efforts of Owens and others who agreed led to a movement called social democracy
What is SOCIALISM?
... In major work Das Kapital, Marx forecast the end of
capitalism. Doomed cause based on inequality. Capitalists vs
Prolitariat. Capitalists controlled factors which gave them
power and control.
Capitalists gained profit at expense of workers – Theory of
Labor value suggested by Marx.
Study Guide (Use your notes and chapter 2 in the book) This is a
... 13. What is the role of government in our free enterprise
14. How do freedom of enterprise and freedom of choice
apply to the American economy?
15. What roles do private property, the profit incentive,
and competition play in the American economy?
16. How does an “invisible hand” directing ...
Econ Unit 1 Study Guide Terms- Write the word, pg number
... 14. What are the benefits of the US free-enterprise system to producers and consumers? 2.2
15. What are the goals of US economic policy? 2.3
16. Why are scarcity and choice basic economic problems? 2.3
17. How do laws against false advertising promote economic equity? And which of the economic goals ...
Unit 8 Types of economies
... how much to buy, or they can save their
2.Full Employment: almost everyone seeking
employment finds a job.
3. Allow businesses to make profit.
◦ Competition helps
Keep prices low and quality high
Fuels economic growth so more people prosper
Chapter 4, Section 5
... • The way people choose to produce and exchange
goods is called as economic system
– Traditional Economy - trade without money, or “barter”
– Command Economy – production determined by government, who
also owns the means of production, and does not necessarily reflect
the consumer demand: communism
... What economic goods will be
How will goods be produced?
For whom will the economic goods
... Business owned by stockholders who
share in the profits but is not responsible
for its debt.
Political and economic theory where the
means of production owned by the
When laborers refuse to work
... The businesses’ need to make profits drive their decisions.
Capitalism: Economic system in which businesses, industries and resources are
privately owned. The government’s role is only to protect property rights and
prevent businesses from cheating.
A market based economy in which the government als ...
The American Economic System
... ability to accumulate wealth
Competition – (the regulator) the
struggle between buyers and sellers
to get the best products at the best
THE SCIENCE OF ECONOMICS Economics is the social science
... as perfect competition and monopoly for implications as to behaviour and economic efficiency.
Analysis of change in a single market often proceeds from the simplifying assumption that
relations in other markets remain unchanged, that is, partial-equilibrium analysis. Generalequilibrium theory allows ...
19th Century Economics
... provide no protection from
monopolies or foreign goods
• Capitalist economists argue that
Production for use
Production for use is a phrase referring to the principle of economic organization and production taken as a defining criterion for a socialist economy. It is held in contrast to production for profit. This criterion is used to distinguish socialism from capitalism, and was one of the fundamental defining characteristics of socialism initially shared by Marxian socialists, evolutionary socialists, social anarchists and Christian socialists.This principle is broad and can refer to an array of different configurations that vary based on the underlying theory of economics employed. In its classic definition, production for use implied an economic system whereby the law of value and law of accumulation no longer directed economic activity, whereby a direct measure of utility and value is used in place of the abstractions of the price system, money and capital. Alternative conceptions of socialism that don't utilize the profit system such as the Lange model involve the use of a price system and monetary calculation.The central critique of the profits system by socialists is that the accumulation of capital (""making money"") becomes increasingly detached from the process of producing economic value, leading to waste, inefficiency, and social issues. Essentially it is a distortion of proper accounting based on the assertion of the law of value instead of the ""real"" costs of the factors of production, objectively determined outside of social relations.