economics of the nations - economic systems

lock in everypony

What was the main economic goal of mercantilism?

Hoard gold and silver + export more than import

What are the mercantilist five-point program?

Exploration, Trade, Domestic Manufacturing, Colonization, Allies/Treaties/Conquest

According to Adam Smith, what truly makes a nation wealthy?

Prosperity of its people through good and services

What did Adam Smith mean by the “invisible hand?”

The invisible hand guides the economy through supply and demand (self interest), not direct gov. interference

What are the two fundamental questions that determine whether a nation is more capitalistic or socialistic?

Who owns the factors of production, and who answers the three economic questions (what, how, and for whom to produce)

What are the three main duties of government under classic liberal capitalism, according to Adam Smith?

Protect Citizens from each other, from foreign and domestic aggression, provide public goods

A nation in which the government provides cradle-to-grave care, funded by very high taxes, would be classified as practicing:

State Capitalism (welfare state)

Which type of socialism involves government ownership of major industries such as energy, healthcare, and transportation, while still allowing private ownership of small businesses?

Social Democracy

According to Karl Marx, centralized socialism would eventually lead to which "final stage" where government disappears and people share resources equally?

Communism Theory