Mercantilism & Its Critics
This system measured a nation’s wealth by how much gold and silver it had.
What is mercantilism?
This extreme economic system exists only in theory and involves no government.
What is radical capitalism?
This thinker is considered the father of modern capitalism.
Who is Adam Smith?
This is an example of a public good in the U.S.
What are highways?
This scripture warns about the dangers of loving money.
What is 1 Timothy 6:10?
According to mercantilism, a country should have this kind of balance of trade.
What is a favorable balance (more exports than imports)?
The government owns all factors of production and makes all decisions.
What is centralized socialism?
He believed history is marked by class struggle.
Who is Karl Marx?
These two questions determine if an economy is capitalistic or socialistic.
Who owns the factors of production? Who answers the economic questions?
Capitalism aligns with these two biblical principles.
What are private ownership and personal accountability?
This economic philosophy rose in opposition to mercantilism.
What is laissez-faire liberalism?
This modern system is based on Adam Smith’s ideas.
What is classic liberal capitalism?
This book by Smith laid the foundation for capitalism.
What is The Wealth of Nations?
Why do public goods often become the responsibility of the government?
Because private businesses cannot produce them at a profit and still have them affordable and available nationwide.
What real problem does communism seek to address?
Man often uses business to exploit others.
Adam Smith said this was the root problem of mercantilism.
What is the idea that wealth = money (gold and silver)?
This is the system where cornerstone industries are government-owned, but private ownership still exists.
What is state capitalism?
This book by Marx and Engels described the path to communism.
What is The Communist Manifesto?
When a government buys major businesses, it’s called this.
What is nationalization?
One major danger of capitalism from a biblical view.
What is the potential to exploit others or idolize wealth?
Name two results Smith predicted if mercantilism were fully practiced.
what is an infertile country, angry citizens, and surrounding enemies?
In this final stage of Marx’s economic theory, government is no longer necessary.
What is communism?
Smith believed this metaphorical force would guide markets.
What is the invisible hand?
When those businesses are sold back to the people, it’s called this.
What is privatization?
What lesson should advocates of radical capitalism learn from the flaws of communism?
That man’s sinful nature can corrupt an unregulated market.