Economic Systems and World Events: A Review

These flashcards summarize key concepts and events related to capitalism, communism, and significant historical events leading to and during the World Wars.

What is capitalism based on according to Adam Smith?

Supply and demand determine prices and profit.

Who developed the concept of capitalism in "The Wealth of Nations"?

Adam Smith.

What does competition lead to in a capitalist economy?

Lower prices, better workers, and improved products.

Who is considered the father of communism?

Karl Marx.

What was published by Karl Marx in 1848?

The Communist Manifesto.

What triggered the Boxer Rebellion in China?

The introduction of opium by the British.

What treaty was considered one of the worst treaties and a major cause of WWII?

The Treaty of Versailles.

What was the U.S. military strategy during the Cold War to contain communism?

Containment.

What significant wall symbolized the division of Europe during the Cold War?

The Berlin Wall.

What was the outcome of the Cuban Missile Crisis?

Nuclear missiles were removed from Cuba in exchange for the U.S. not invading Cuba.

What did Mikhail Gorbachev's policies promote in the Soviet Union?

Openness (glasnost) and economic reform (perestroika).

What significant event marked the end of the Cold War?

The collapse of the Berlin Wall.

What happened in India after the death of Gandhi?

The country was divided along religious lines between Hindus and Muslims.