Social Unit One Full Review

What is the defining feature of a command economy?

Government control of production and distribution of goods.

How does the government determine what goods to produce in a command economy?

The government decides based on what is deemed necessary for the common good of society.

What is meant by a 'centralized state' in a command economy?

It refers to a government that holds almost unlimited power to make large economic decisions quickly.

What is the role of workers in a command economy?

Most workers are employed by the state and are expected to prioritize the needs of the state over individual desires.

What are production quotas in command economies?

Targets set by the government for the workforce to achieve, estimating how many goods are needed.

What is the profit motive in a command economy?

Profit motive is discouraged; instead, the focus is on working for the collective good.

What was the Soviet Union's approach to its economy?

It was a communist state that used a strong central government to provide for the people, based on Marxist ideals.

What are the Five Year Plans?

A system of economic planning in the Soviet Union that set long-term goals and quotas for industrialization and resource output.

What is collectivization in planned economies?

A system where sectors of the economy are brought together under government control, collectively owning the means of production.

What was the Great Leap Forward in China?

A program aimed at rapidly industrializing China and collectivizing its economy, which ultimately led to famine and disaster.

How does Cuba's planned economy function?

Cuba provides universal healthcare and education, focusing on meeting basic needs rather than wealth accumulation.

What are some pros of command economies?

Fair prices and wages, low unemployment rates, and the ability to quickly restructure the economy.

What are some cons of command economies?

Discouragement of innovation, missed production quotas leading to shortages, and workers assigned to undesired jobs.

What is a mixed market economy?

An economic system that attempts to balance government intervention with profit motives.

What are some characteristics of a mixed market economy?

Price controls, minimum wages, employment insurance, and public/private partnerships.

How does Canada exemplify a mixed market economy?

Canada has both public and private ownership of resources, with government regulation of prices on essential items.

What is the role of Crown Corporations in Canada?

Companies owned by the government to provide essential products and services to Canadians.

What does the CRTC mandate in Canada?

That 60% of all media content on TV and radio must be Canadian-made to promote Canadian culture.

What is Sweden's approach to social programs?

High taxes fund extensive social programs, ensuring support from cradle to grave for citizens.

What does 'Cradle to Grave' refer to in Sweden?

A system providing free childcare, education, unemployment insurance, and old age pensions.

How does Sweden emphasize social responsibility?

By promoting income redistribution and encouraging successful individuals to help those less fortunate.

What is the significance of unionization in Sweden?

70% of the labor force is unionized, with wages set through collective bargaining instead of a state minimum wage.

What is Norway's approach to balancing private and public sectors?

High taxes on oil revenue fund social programs, emphasizing corporate responsibility to society.

What is the focus of Norway's tax and welfare system?

To meet the basic needs of its people and create a more economically and socially equal society.

What is a sovereign wealth fund?

A state-owned investment fund.

What does OECD stand for?

Organization for Economic Cooperation and Development.

What type of education does Norway offer to non-citizens?

Free education, provided they speak Norwegian.

What is the definition of economics?

The study of economic systems and a system for trading and distributing things of value in a society.

What is the difference between wants and needs?

Wants are non-essential items (e.g., electronics), while needs are essential for survival (e.g., food, water).

What is scarcity in economics?

The principle that people's unlimited desires clash with limited resources, making resources valuable.

What are the basic economic questions addressed by different economic systems?

What will be produced? By whom will it be produced? For whom is it being produced?

What are the values of a centrally planned economy?

Common good, cooperation, government control, and public ownership.

What are the values of a free market economy?

Profit, competition, individual sovereignty, and private ownership.

What are the six basic economic goals?

Economic growth, efficiency, stability, security, equality, and freedom.

What is taxation?

The collection of taxes by the government to fund services like healthcare and military.

What are the different methods of taxation?

Flat tax, progressive tax, sales tax, personal income tax, and corporate tax.

What is inflation?

The sustained increase in the prices of goods and services over time.

What is hyperinflation?

Massive inflation resulting in a plummeting value of currency, often due to excessive money printing.

What is interest in economic terms?

Payment from a borrower to a lender, based on a percentage of the money owed.

How do central banks manipulate interest rates?

By lowering rates to encourage spending or raising rates to curb spending.

What is monetary policy?

Policies to manage the growth of the money supply and control currency value.

What is fiscal policy?

Government decisions regarding spending and taxation, which can vary by administration.

What is mercantilism?

An economic system benefiting monarchs through resource exportation and government regulation.

What is capitalism?

An economic system with little to no government regulation, emphasizing competition and wealth distribution.

Who is considered the father of capitalism?

Adam Smith.

What is the 'invisible hand' in economics?

A concept by Adam Smith that suggests individuals' self-interest can unintentionally improve society.

What is laissez-faire capitalism?

An economic philosophy advocating minimal government interference in the economy.

Who is Karl Marx?

The father of communism, known for his critique of capitalism and advocacy for a classless society.

What did Karl Marx believe about capitalism?

Marx believed capitalism was based on exploiting labor, predicting its fall and a shift towards communism where workers own the means of production.

What was Robert Owen's belief regarding labor and workers' rights?

Owen believed that business owners had a responsibility to operate profitably while treating workers well, advocating for eight hours of labor, education, and recreation.

What is Keynesian Economics?

Keynesian Economics, associated with John Maynard Keynes, posits that government intervention is necessary to create a stable economy and provide opportunities for people to earn money.

What did Friedrich Hayek argue about government intervention in the economy?

Hayek argued that government should avoid intervening in business, as it could lead to extreme boom/bust cycles and threaten individual liberty.

What is the main idea behind Monetarism as proposed by Milton Friedman?

Monetarism suggests that controlling the money supply is key to managing the economy, advocating for tax breaks to stimulate investment and job creation.

What is the relationship between Supply-Side Economics and Monetarism?

Supply-Side Economics, closely related to Monetarism, focuses on reducing barriers for suppliers to create goods, believing that this will stimulate economic growth and benefit all.

What is the concept of 'Trickle-Down Economics'?

Trickle-Down Economics is the idea that benefits for the wealthy will eventually trickle down to the rest of the population, promoting overall economic growth.

What is the purpose of the Electoral College in the United States?

The Electoral College was established to balance the influence of populous states and prevent the tyranny of the majority, giving smaller states a greater voice in presidential elections.

How many electoral votes are needed to win a U.S. presidential election?

A presidential candidate needs 270 electoral votes to win the election.

What is a criticism of the Electoral College?

Critics argue that the Electoral College may not reflect the will of the people and can lead to an unpopular candidate winning the presidency.

What does 'Demand-Side Economics' emphasize?

Demand-Side Economics emphasizes that consumer demand drives the economy, and government should facilitate this through programs and fiscal policies.

What is the 'boom and bust' cycle?

The 'boom and bust' cycle refers to the economic fluctuations between periods of rapid growth (boom) and decline (bust), which Hayek believed could be moderated but not eliminated.

What is the role of government in Keynesian Fiscal Policy?

In Keynesian Fiscal Policy, the government intervenes by adjusting taxes and spending to manage economic cycles and promote recovery during recessions.

What did Hayek believe about central planning?

Hayek believed that central planners could not effectively predict market demand, asserting that a free market price system is essential for balancing supply and demand.

What did Milton Friedman think about the welfare state?

Friedman opposed the welfare state, arguing that it leads to excessive government spending and debt, advocating instead for fiscal responsibility.

What is the significance of the 'All or Nothing' system in the Electoral College?

The 'All or Nothing' system means that the winning party in a state receives all of its electoral votes, which can create discrepancies between the popular vote and electoral outcomes.

What is the primary focus of Supply-Side Economics?

Supply-Side Economics focuses on making it easier for businesses to produce goods, believing that this will create jobs and stimulate economic growth.

What did Robert Owen advocate for in terms of labor conditions?

Owen advocated for sufficient labor hours to ensure workers had time for education, recreation, and rest, emphasizing humane working conditions.

What is the relationship between Keynesian Economics and government intervention?

Keynesian Economics argues that government intervention is necessary to stabilize the economy and support consumer demand during economic downturns.

What is the primary argument of Hayek against collectivism?

Hayek argued that collectivism requires high government control, which threatens individual liberty and personal freedoms.

What did Friedman believe about tax breaks for businesses?

Friedman believed that tax breaks for businesses would encourage investment, leading to job creation and broader economic benefits.

What is the concept of 'Tyranny of the Majority'?

The 'Tyranny of the Majority' refers to the potential for a majority to impose its will on minority groups, which the Electoral College was designed to mitigate.

What is the significance of the price system in Hayek's economic theory?

Hayek emphasized that the price system in a free market is essential for balancing supply and demand, allowing for individual choice and liberty.

What does Responsible government mean in Canada?

It means the executive branch is dependent on the support of elected officials in the legislative branch.

How does Responsible government reflect the will of the people?

It ensures accountability of the Prime Minister and cabinet ministers to parliament and their constituents.

What is the system of Representation by Population in Canada?

It divides the country into electoral districts, or ridings, each representing about 100,000 people.

What is the First Past the Post (FPTP) electoral system?

A voting system where the candidate with the most votes in a riding wins.

What are the two chambers of Canada's bicameral legislature?

The Senate and the House of Commons.

How many members are in the Canadian Senate?

105 members.

How are Senators appointed in Canada?

They are appointed by the Prime Minister.

What is the role of the House of Commons?

It is responsible for legislation introduced in parliament and is made up of elected Members of Parliament (MPs).

What is the significance of party system power in the House of Commons?

The party with the most seats can form the government.

What is the function of the Senate in Canada?

To provide sober second thought for legislation passed by the House of Commons.

What is the 'Triple E' Senate proposal?

A suggested reform for an elected, effective, and equal Senate.

What is the role of the executive branch in Canada?

To enforce and administer laws, with power lying in the British Monarchy represented by the Governor General.

Who holds executive power in the Canadian government?

The Prime Minister and the Cabinet, known as the Privy Council.

What is the role of the judiciary in Canada?

To interpret laws independently from the executive and legislative branches.

How are Supreme Court Judges appointed in Canada?

They are appointed by the Prime Minister but can be reviewed and removed.

What is the primary purpose of the Conservative Party in Canada?

To promote individual freedom and reduce government involvement in society.

What is the focus of the Liberal Party in Canada?

To assist the poor and disadvantaged and promote national unity with less government regulation.

What is the main goal of the Bloc Quebecois?

To advocate for the sovereignty of Quebec within the Federal government.

What does the NDP stand for in Canada?

Social Democracy, advocating for a comprehensive social welfare system and government regulation.

What is a key characteristic of the U.S. Congressional or Presidential Democracy?

It includes checks and balances where actions must be ratified by another government institution.

What is the structure of the U.S. legislative branch?

It consists of two houses: the Senate and the House of Representatives.

What is the difference in party discipline between Canada and the U.S. Congress?

In the U.S., there is weak party discipline, allowing representatives to vote based on state interests.

What are the principles of the Democratic Party in the U.S.?

They include environmentalism, social liberalism, universal health care, and support for unions.

What are the key principles of the Republican Party in the U.S.?

They advocate for free market economics, personal responsibility, and greater state powers.

What is the term of office for a U.S. Senator?

One third of Senators are elected every year, providing more stability than the House of Representatives.

How many members are in the House of Representatives?

There are 435 members, representing the population.

What is the term length for a U.S. Representative?

Representatives are elected for 2 years.

What is the role of the President in the U.S. government?

The President is the Chief Executive Officer, Head of State, and Head of Government, elected for a term of 4 years.

What is an executive order?

An executive order is a directive issued by the President that does not require Congressional approval.