Economic systems
What are the 3 main economic systems most commonly used?
Traditional
Command
Market
Who is considered the father of socialism?
Karl Marx
What are the signs of a mixed economy?
A mixture of government programs and agencies as well as private ownership and citizens working for themselves.
Why are countries including more capitalist values?
It brings more self motivation for its people. Proven economic success when done correctly
Where did communism began in?
Russia
What are the 3 categories economic systems must answer in terms of production?
How, what, and for whom?
Who suggested that self determination and preservation for self success was the ultimate motivator?
Alexander Hamilton
America is a mixed economy. What government programs were introduced in the 1900s to make it a mixed economy?
Social security, minimum wage, bank insurance, unemployment.
Why are more and more countries transitioning to a mixed economy?
It has shown the most success over history, having a healthy balance of self determination and government protections/support.
How did Russia convince other countries to become socialist?
By threats and force.
What are the names of modern economic systems of Command and Market economies?
Socialism and Capitalism
Who first suggested a 5 - year plan that ended in more problems than success for their country?
Joseph Stalin
Why do mixed economies vary in so many countries?
Typically based on culture and previous history within the country. Government leadership varies too.
What government system do capitalist countries benefit most from? Why?
Democracy, it allows people to vote for laws that benefit their businesses or provide a smoother business environment.
what was the ultimate goal of Karl Marx and his vision of world Communism?
The world can work together to end greed and that there will no longer be a need for government.
What are the key indicators of determining a country's economic system?
How much private ownership/ government ownership
How much spending/ how many programs the government places on its people
Who was responsible for making Russia a communist country?
Vladimir Lenin
What are the issues seen in an economy 100% communist and 100% capitalist
100% communism limits wants and personal freedom
100% capitalist will have abusive employers and unfair working rights and regulations and low pay, overall a low quality of work life.
What are the 3 major issues with a country transitioning to a mixed economy or a capitalist economy?
Culture struggle, people have to work from themselves more
The cost, it is expensive to change the entire direction of regulations, laws, and markets to fit a new system
Power struggle, the government sometimes does not want to lost its power over people.
When did the Soviet Union collapse?
1991
What does Collectivization mean?
the process of organizing a country's industry and production into government ownership and management.
What communist dictator made China a communist country in the 1950s?
Mao Zedong
What are the DISADVANTAGES of a mixed economy focused more on capitalism?
People lose out on government programs they relied on to survive
In a capitalist economy there will be poor people and homeless people.
Not everyone has a fair chance
What does Nationalization mean?
the transfer of property from private to state ownership
What was it called when Eastern European countries joined together to create a economic and political independence?
European Union