Lesson 7 Multiple Choice
___ is the foundation of a Christian economic philosophy
Private ownership of property
Economic philosophy means
theoretical thinking that affirms any economic system
In a ___, the role of the government is simply to protect life and private property
free market
The central argument is
that any government intervention in a free market is inherently counterproductive and sets a nation on a path toward socialism.
The Slippery Slope of Interventionism:
Initial government interventions inherently fail to achieve their intended aims, necessitating further and more extensive interventions. This cycle leads to increasing government control, gradually but inevitably pushing the entire economic system towards socialism.
In an atheistic system, the State determines the purposes man will have with any ____
land, labor or capital
Interventionism is
where the government intervenes with the market and affects it in some way shape or form.
Because interventionism prevents ___, it's ultimately cannot achieve the aims its implementers desire.
economic calculation
New deal socialism
is where the government finally tries to solve our needs
Freedom vs. Coercion:
The fundamental choice facing society is between allowing individuals the freedom to plan their own lives and granting the state coercive power to plan lives for them.
In ___ economies, the government is not doing away with the market, but is trying to control some aspect of ti for specific reasons, normally its own benefit or the benefit of those controlling the government at that particular time.
interventionist
Stewardship logic
is the key to economics; it will be our north star that guides us through the second half of the course.
Initial intervention in the market always fails to achieve the ultimate ends sought, so more ___ has to be applied
intervention
Limited Government Role:
The sole legitimate function of government in an economically free society is to protect life and secure private property rights.
Interest is
the price to use someone else's money
___ occurs over generations as more and more parts of the society are brought under national control or influence
Evolutionary socialism
What does everything come down to
how a particular system views and treats property, markets and law
As interventionism grows throughout a nation's economy, it slowly but inevitably pushes that nation toward ____
socialism
Government as a Consumer/Restrictor:
Governments do not create economic value; they can only restrict production, consume existing wealth, and redirect resources that were generated by the private sector.
The Boom bust cycle is
where things go up in price and hole a ton of value and then people realise they cant pay that price and it crashes.
Pressure in the modern interventionist economies to move toward socialism doesn't just affect our poctet=books, it also affects our
ability to worship God
Four basic questions related to economic stewardship
1. What will be produced?
2. Who will produce it?
3. How will it be produced?
4. For whom will it be produced?
___ determines how a culture understands and engages the world, including the way it practices economics.
Education
The Economic Calculation Problem:
Central or government planners cannot accurately make rational economic decisions because they lack the necessary information provided by free-market price signals. Without private ownership and competitive pricing, efficient resource allocation is impossible.
What is the root cause of depressions and recessions
significant intervention by a central bank pursuing an inflationary monetary policy is the root cause