Economic Ideas
System where private property is bought and sold in free markets.
What is capitalism?
Government plays a very small role in this type of capitalism.
What is laissez-faire capitalism?
A period of fast economic growth
What is a boom?
When unemployment rises and spending drops
What is a recession?
This country faced an economic crisis when copper demand dropped and prices fell
What is Zambia?
The main goal of capitalism is to make this.
What is profit?
This type of capitalism involves government guiding industries.
What is state-guided capitalism?
When a financial bubble bursts, this can happen to banks.
What is failure/collapse?
Government action to boost the economy
What is stimulus?
This policy approach lowered taxes on wealthy individuals and reduced regulation to try to increase economic growth.
What is trickle-down economics?
This economist argued capitalism doesn’t automatically work well.
Who is Nick Hanauer?
Government spending and taxes used to manage the economy
What is fiscal policy?
These are hard to control and can destroy capital when they burst
What are financial bubbles?
This economist argued that too much government intervention can hurt economic recovery
Who is Friedrich Hayek?
This example shows how global markets can prioritize profit over human survival, as this country exported grain during a famine
What is India?
This idea says government should stay out of the economy.
What is laissez-faire?
Central banks control money and interest rates using this.
What is monetary policy?
A major crisis that ended laissez-faire capitalism.
What is the Great Depression?
This economist believed the free market, not government, should guide recovery and economic stability
Who is Milton Friedman?
This organization provides financial support to countries but can contribute to long-term debt problems.
What is the World Bank?
This theory says population growth lowers living standards.
What is the Malthusian Trap?
This economist believed government should step in during recessions.
Who is John Maynard Keynes?
This happens when capital stops growing, profits fall, and the system struggles to restart growth
What is a crisis of accumulation?
This shift happened when people lost confidence in strong government control during the 1970s.
What is the transition to neoliberalism?
This recent policy involved the U.S. government taking a stake in a private company to boost chip production.
What is the U.S. investment in Intel?