chapter 12

1. Confiscate private property

2. Limit economic competition 

3. Government monopolies 

4. Ration resources 

5. Control of labor unions 

6. Nationalize banking 

7. Government control of wages

list the goals of the command economy. (there are 7)

nationalism

promoting and supporting a nation regardless of moral or ethical code

communism 

an economic system based on the government control of production, distribution, and consumption of goods

government control

fill in the blank 

communism is an economic system based on the _________ _____ of production, distribution, and consumption of goods

• violence

• revolution

fill in the blank

communism is usually associated with _________ and _________

karl marx

founder of communism

communist manifesto 

fill in the blank 

karl marx created the basic principles of communism in his book The __________ _________

bourgeois

property owners who are the cause of economic problems

proletariat

the common, “poor” working class

class struggle 

fill in the blank 

history is a _____ _______ between the middle class property owners and the poor working class

condition

fill in the blank

marx advocated for equality of _________; there is no rich or poor, but everyone as the same standing

karl marx

who said: “From each according to his ability, to each according to his needs”?

utopia

a world in which all goods, money, and labor will be shared equally among the people; a perfect society

bolshevik revolution 

first communist revolution in history (1917)

vladimir lenin

fill in the blank

the bolshevik revolution was led by ______ _____

1. communist

2. free

fill in the blank

Germany was divided into __________ East Germany and ____ West Germany

berlin

fill in the blank

germany’s capital _______ was divided into Communist East Berlin and free West Berlin

aleksandr Solzhenitsyn 

famous writer who was a prisoner of communist Russia

1. Heavy government control 

2. Weak economy 

3. Limited jobs 

4. Low amount of goods

list the four qualities of life. 

inefficiency

goods, jobs, and general economic functions do not work properly resulting in shortages

no market signals

scarcity and waste results when the government ignores people’s needs / wants

bad management 

government and business officials are under qualified or not motivated to succeed

ineffective reforms 

attempted changes to a weak economy, usually creating more problems

five-year plan of the Soviet union

what’s an example of an ineffective reform?

1. inefficiency

2. no market signals

3. bad management

4. ineffective reforms

list the permanent problems of control economies:

1. __________: goods, jobs, and general economic functions do not work properly resulting in shortages 

2. ___ _______ ______: scarcity and waste results when the government ignores people’s needs / wants 

3. ____ __________: government and business officials are under qualified or not motivated to succeed 

4. ________ _______: attempted changes to a weak economy, usually creating more problems (ex: Five-Year Plan of the Soviet Union)

socialism

an economic system based on government ownership and control of resources

• laws 

• reforms 

fill in the blank 

socialism is accomplished through ____ and _______

false promises

fill in the blank

socialism is ________ ________ of a better future, economy, education, etc. for all

• government aid

• government regulation

fill in the blank

with socialism, you must sacrifice freedoms, which means more ________ ____ and _________ _______

sweden 

what is an example of a country that sacrifices freedom (socialism)? 

1. health insurance

2. free

3. lower quality

fill in the blank

with the infiltration of socialism’s universal healthcare:

1. ______ _________ is considered a basic human right

2. Allowing “_____” medical coverage for all citizens 

3. Results in no incentive for doctors, understaffed, underfunded, ______ _______ care