Capitalism
How is production controlled?
Private ownership
What is socialism?
This economic system advocates for public or collective ownership and control of the means of production.
When the price of a good increases the quantity demand__
decreases
This book, written by Karl Marx and Friedrich Engels, considered the foundational text of communism
The "Communist Manifesto"
Which Economic philosopher wrote Capitalism: The Unknown ideal?
Ayn Rand
Who is considered the "father of Capitalism"
Adam Smith
Socialists often argue that this is necessary to reduce inequality and provide basic necessities for all citizens.
Wealth redistribution.
If the price of cars falls, carmakers likely to make ___________.
Fewer cars
In a Communist economy, this entity controls the means of production, such as factories and farms
The state
Who wrote "The Wealth of Nations"
Adam Smith
How are prices determined?
Supply and demand
What is a key difference between socialism and communism?
Socialism may allow for some private property and market activity.
Along a supply curve, if the price of oil falls, what will happen to the quantity of oil supplied?
It will decrease
This is a type of economic system where the government makes all decisions about production, distribution, and consumption.
Command economy
Karl Marx envisioned a Communist society with one without private property or this:___
Social classes
What is the Metaphor used by Adam Smith that describes the unseen forces of self-interest that impact the free market
Critics of socialism argue that it can lead to reduced efficiency, lack of innovation, and excessive gov. control over this.
The economy
This is the point where the supply and demand curves intersect, indicating the price and quantity at which the market is in balance.
The equilibrium point.
What challenges have Communist regimes faced economically?
Shortages, inefficiency, and lack of innovation
Who is regarded as the founder of modern macroeconomics?
John Maynard Keynes
What are common critiques about Capitalism?
capitalism is inherently exploitative, unstable, unsustainable, and creates economic inequality
Socialists often point to this Scandinavian country as an example of a successful social democracy with a strong welfare state.
Sweden
This is a measure of how much the quantity demanded of a good responds to a change in its price, with necessities typically having a lower value.
Price elasticity of demand.
This is a common critique of Communist economies, referring to the lack of innovation and efficiency due to absence of competition
Lack of economic incentives
What are do critics claim that Ayn Rand's philosophy lacks?
Altruism