World Civ: New Economic Theories

21 August 2022
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question
In The Communist Manifesto, Karl Marx hypothesized that capitalism would fail if workers ___________.
answer
revolted

Explanation: In The Communist Manifesto, Karl Marx hypothesized that capitalism would fail if workers were able to unite and overthrow the system. He believed that the workers would eventually become aware of their exploitation and rise up against their capitalist oppressors. Marx believed that this revolution would lead to the establishment of a classless society, in which the means of production would be owned by the community as a whole.
question
The three main ideas behind capitalism as defined by Adam Smith are
answer
competition, self interest, and laissez-faire.

Explanation: that people should pursue their own interests, that the economy will be more efficient when people can specialize in what they do best, and that competition will lead to lower prices and better products.
question
What two principles form the basis for capitalism?
answer
private ownership and free markets

Explanation: The two principles that form the basis for capitalism are private property and the free market. Private property means that individuals own the means of production, such as factories and land, and are free to use them as they see fit. The free market is a system in which the prices of goods and services are determined by the forces of supply and demand, rather than by the government.
question
This excerpt is from The Wealth of Nations by Adam Smith. "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest." Which statement best explains Smith's point?
answer
Businesses acting in their own interests expect something in return for their services.

Explanation: Adam Smith is saying that people are not naturally altruistic, and that we should not expect people to be kind or helpful simply out of the goodness of their hearts. Instead, we should expect people to act in their own self-interest, and only help others if doing so will benefit them in some way.
question
The following passage is from The Communist Manifesto written by Karl Marx in 1848. "Let the ruling classes tremble at a Communist revolution. The proletarians [workers] have nothing to lose but their chains. They have a world to win. Working men of all countries, unite!" Which best explains what Marx hoped to get across?
answer
Workers should unite in the communist movement.

Explanation: Marx hoped to inspire workers to overthrow the ruling class and create a communist society. He believed that workers had nothing to lose and everything to gain by revolting against the ruling class. He called on workers of all countries to unite in order to achieve this goal.
question
What moderate reforms did European socialists support? Check all that apply.
answer
assistance for the poor better working conditions minimum wage laws

Explanation: -Support for a mixed economy-Support for a welfare state-Support for nationalization of key industries-Support for worker cooperativesSocialists in Europe tended to support moderate reforms as opposed to more radical ones. This included support for a mixed economy, in which both the private sector and the public sector would play a role; support for a welfare state, in which the government would provide social services and safety nets for citizens; support for nationalization of key industries, such as utilities and transportation; and support for worker cooperatives, in which employees would have a say in how their workplace was run.
question
Workers competed for jobs in the model factory started by Robert Owen because
answer
he built schools.

Explanation: In the early 1800s, most factories were small, with only a few workers. Jobs in these factories were not very good, and workers had to compete for them. Robert Owen, a wealthy businessman, decided to start a model factory that would be different from other factories. He would treat his workers well and pay them good wages. He would also provide them with housing, schools, and other amenities. The workers at Owen's factory would not have to compete for jobs.
question
In a free market, supply and demand determines
answer
the type and number of goods produced.

Explanation: the price of a good.In a free market, the price of a good is determined by the forces of supply and demand. The amount of a good that producers are willing to supply at a given price is the supply of the good, and the amount of the good that consumers are willing to demand at a given price is the demand for the good. When the two quantities are equal, the market is in equilibrium and the price of the good is determined.If the demand for a good increases while the supply of the good remains the same, the price of the good will increase, as consumers are willing to pay more for the good than before. Similarly, if the supply of a good increases while the demand for the good remains the same, the price of the good will decrease, as producers are willing to sell the good at a lower price in order to sell more of it.
question
Karl Marx called for ____________ to control government and develop a classless society.
answer
workers

Explanation: Karl Marx was a German philosopher and economist who was a major figure in the development of communism. In his 1848 book, The Communist Manifesto, Marx called for the working class to overthrow the capitalist system and create a classless society.
question
According to Karl Marx, the economic ideas behind socialism would lead to a
answer
communist revolution.

Explanation: more classless, egalitarian societyIn Karl Marx's view, socialism is a natural result of the economic ideas behind it. These ideas would lead to a more classless, egalitarian society in which people would work together for the common good.