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39 Cards in this Set
- Front
- Back
when one country can produce a good more cheaply than another.
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absolute advantage
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according to John Maynard Keynes, the sum of the demand of three sectors of the economy: households, businesses, and government.
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aggregate demand
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the effect, according to Marx, of capitalist systems which do not allow the working class to develop their productive potential or satisfy their real human needs.
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alienation
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according to Marx, the class that owns the means of production.
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bourgeoisie
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a system where a single authority makes the decisions about what is produced, and by whom, and to whom it is distributed.
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command economy
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the belief that government should be authoritative, defining the needs of the community and seeing that those needs are met.
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communitarianism
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a grant that indicates that a particular expression of an idea is the private property of an individual or company.
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copyright
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the system a society uses to provide the goods and services it needs to survive and flourish.
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economic system
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the materials and social controls that society uses to produce its economic goods.
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economic substructure
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the materials (land, labor, natural resources, machinery, energy, technology) used in production.
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forces of production
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a system in which individual firms, privately owned, make their own decisions about what they will produce and how they will produce it.
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free market system
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the process by which the economic and social systems of nations are connected together so that goods, services, capital, and knowledge move freely between nations.
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globalization
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the Marxist view that history is determined by changes in the economic methods by which humanity produces the materials on which it must live.
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historical materialism
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a system of normative beliefs shared by a group, expressing answers to questions about human nature, the purpose of society, and the values of the group.
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ideology
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the combined effects of increased concentration, cyclic crises, rising unemployment, and declining relative compensation.
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immiseration
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the belief that government has a limited role, existing primarily to protect the property of the individual and keep the marketplace open.
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individualism
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the property that consists of an abstract, nonphysical object; such property, unlike physical property, is nonexclusive.
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intellectual property
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according to Adam Smith, market competition drives self-interested individuals to act in ways that serve society.
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invisible hand
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according to John Maynard Keynes, free markets alone are not necessarily the most efficient means for coordinating the use of societies resources.
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Keynsian economics
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according to Locke, the moral principle that since all men are free and equal, no one ought to harm another in his life, health, liberty, or possessions.
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law of nature
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the right to life, liberty, and property.
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Lockean rights
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an economic system based primarily on private individuals making decisions about what they will produce and who will get it.
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markets
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the buildings, machinery, land, and raw materials used in the production of goods and services.
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means of production
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an economy with both free market and central planning attributes.
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mixed economy
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the rights that nature teaches each man that he has according to the law of nature.
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natural rights
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the assumption that whatever happens naturally is always for the best.
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naturalistic fallacy
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new inventions invented by a person that are designed as private property.
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patent
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economists who have sought to challenge and modify Keynesian economics.
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post-Keynesian school
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a system that maintains a system of property laws to assign private individuals the right to make decisions about what they own.
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private property
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system
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according to Marx, the alienated working class.
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proletariat
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the social controls used in producing goods (i.e., the social controls by which society organizes and controls its workers).
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relations of production
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all available resources are used and demand always expands to absorb the supply of commodities made from them.
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Says law
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belief that economic competition produces human progress.
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social Darwinism
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a society’s government and its popular ideologies.
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social superstructure
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according to Locke, the state where each man is the political equal of all others, perfectly free of any constraints except the law of nature.
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state of nature
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the difference between the value of labor and the wage paid for it.
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surplus value
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Charles Darwin’s term for the process of natural selection.
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survival of the fittest
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societies that rely on traditional communal roles and customs to carry out basic economic tasks.
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tradition based societies
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