Capitalism, Socialism, Property Rights, and Economic Freedom — Vocabulary Flashcards

Vocabulary flashcards covering key concepts from the lecture notes on property rights, social theories, capitalism vs. socialism, and economic freedom.

Private Property

A right to exclusive use, control, and transfer of a resource, allowing the owner to exclude others from use.

Negative Right

A right that imposes a duty on others not to interfere with the holder's actions or property.

Natural Right

An inherent right believed to belong to people by nature, often tied to freedom and moral law.

Freedom

The absence of coercion or interference in action; the ability to exercise choice.

Common Property

Property owned collectively by a group or community rather than by individuals.

State Owned Property

Property owned and operated by the government.

Nationalized Property

Property transferred from private to state ownership through nationalization.

Expropriated Property

Private property seized by the state, typically for public use.

Collective Property

Property owned by a collective or community, managed by the members.

Social Justice Theory

A theory of justice emphasizing fair distribution and protection from exploitation, often associated with Karl Marx (e.g., The Communist Manifesto, 1848).

Exploitation Theory

The theory that capitalists extract surplus value from workers by paying wages below the value of their labor.

Bourgeoisie

The capitalist class that owns the means of production.

Proletariat

The working class that sells labor to earn wages.

Capitalist View on Exploitation

Capitalists reject exploitation theory, arguing wages arise from voluntary exchange and productivity; exploitation is not inherent, and market mechanisms determine pay.

Equality (Rights)

The principle that individuals have equal legal rights and protections under the law.

Equality (Results)

The principle that socioeconomic outcomes (income, wealth) should be made equal, often via redistribution.

Consumer Sovereignty

The idea that consumers' preferences determine which goods and services are produced.

Profits

Financial gains earned by firms from selling goods or services after costs.

Self-Interest

Individuals pursue their own gains, guiding decisions in markets.

Adam Smith

18th-century economist who argued that self-interest and the free market guide economic activity; author of The Wealth of Nations (1776).

Command Planning

A central authority dictates what to produce, how to produce, and for whom.

Incentives

Factors that motivate behavior; can include material rewards, moral suasion, or coercion.

Mixed Economy

An economic system that blends private enterprise with government intervention.

Welfare State

A system where the government provides social insurance and welfare programs funded by taxes.

Regulation

Government-imposed rules and standards that govern business behavior.

Government Ownership of Industry

State control or ownership of key industries.

Redistribution of Income

Policies that transfer income from wealthier to poorer individuals, e.g., taxes and transfers.

Economic Freedom

The degree to which individuals and firms can operate with limited government interference.

Economic Freedom Measure

A composite index ranking countries on property rights, regulation, government size, and related factors.