economic test chap 5-6

what is the economic problem? - How to best accomplish the economic growth

What are the four economic goals?-  a low level of unemployment, a stable price level,  a healthy rate of economic growth, and an equal distribution of income

Out of the four goals, which is the most controversial? - equal distribution of income

What is extensive growth? - It is the increase in an economy's output due to expanding the quantity of inputs used in production.

What is intensive growth? - the increase in an economy's output due to improvements in efficiency

What is the input question?- How will a nation produce its goods

What is the output question?- What will the nation produce

What are individual purchases for personal use?- consumer goods

What are goods firms use to produce consumer goods?- Capital goods

What do we call frims who rely more on human labor- labor intensive

What do we call firms who rely on machines more then human labor?- Capital intensive

What is the distribution question? Who will receive what the nations produce

What policy says that each person in a nation has a right to a part of that nations wealth simply because he is part of the human race?- Egalitarian fairness

What is the equal distribution the nations pool of wealth to all itss citizens regardles of what any individual has contributed to the pool?- economic leveling

What is libertarian fairness?- answers how the market economy answer the distribution question

How long did mercantilism last?- 1500-1776

What is the term that says that wealth comes from the increased amount of gold and silver?- mercantilism

What are the five points to accumulate wealth?- Exploration, Domestic manufacturing, Colinization, Favorable balance of trade, and Allicane/treaties/conquest

What book argues that the accumulation of gold and silver does not make a nation wealthy and who wrote it? - Nation of wealth, adam smith

What term means “let alone”? - Laissez faire.

What is the invisible hand theory? - while pursuing personal interest, others benefit from that pursuit.  

How to tell weather nation follows more a capital or socialistic philosophy?- By answering the questions: who owns the nations factor of production? Who answers the three economic questions?

What are the forms of Capitalism? Radical, classical liberalism, state

What is the extremes form of state capitalism? - Welfare state

What is the most extreme form of capitalism? - radical capitalism

What is classical liberalism? - acknowledgment of government but allows minimal ownership of resources and decision making power to perform its responsibility

What it the duty of the government? - Protects its citizens from foreign aggression, Protect the rights of its citizens from infringement by others, and provide public goods

What is state capitalism? - Private citizens own the vast majority of natural resources, financial capital, and labor, but the government can intervened decision making

What is welfare state? - can controle health care system and trasportation

What is social democracy? - taking possession of the majority of the principal business that nation has crossed the line into socialism

What do we call when the governments takes control of a private industry or company? - Nationalization

What do we call where the government owned business or service are transferred to private ownership? - privatization

What is centralized socialism- maintains that the national government should be both the central owner and the decision maker in all economic activities

The most extreme form of socialism? - communist