Term
| What was Marx's critique of capitalism? |
|
Definition
| Capitalism is class conflict and internally flawed. Workers must take the means of production. |
|
|
Term
| What is the modern lecture view of socialist / planned economies? |
|
Definition
| Planning has perverse incentives, little innovation, and shortages. Real systems are mixed. |
|
|
Term
| 6. Why do most economists like capitalism? Concerns with modern capitalism? |
|
Definition
| They like positive incentives, decentralized decisions, and competition. Concerns: inequality, competition dying into big firms, worker-firm conflict, externalities, and Social Darwinism as a bad excuse. |
|
|
Term
| Why do most economists like capitalism? |
|
Definition
| Positive incentives, decentralized decisions, and competition. |
|
|
Term
| What are the lecture concerns with modern capitalism? |
|
Definition
| Inequality; competition dying into big firms; worker-firm conflict; externalities; Social Darwinism as a bad excuse. |
|
|
Term
| 7. Why won't public goods work if left to the market? |
|
Definition
| Public goods are non-excludable and non-rivalrous, so people free-ride. If no one pays, the good is under-provided even when it is worth producing. |
|
|
Term
| What two traits do public goods have? |
|
Definition
| Non-excludable and non-rivalrous. |
|
|
Term
| What is the free-rider problem? |
|
Definition
| People benefit without paying. If no one pays, the public good is under-provided even when it is worth producing. |
|
|
Term
| 8. Adam Smith's view of government? What do modern economists add? |
|
Definition
| Smith wanted limited government: protect property, enforce contracts/justice, provide a few things markets will not (like defense)—not steer trade. Modern economists add market-failure roles: public goods, externalities, antitrust, and some regulation when information is bad. |
|
|
Term
| What was Adam Smith's view of government? |
|
Definition
| Limited government: protect property, enforce contracts/justice, provide a few things markets will not (like defense). Not steer trade. |
|
|
Term
| What do modern economists add to government's role? |
|
Definition
| Market-failure roles: public goods, externalities, antitrust, and some regulation when information is bad. |
|
|
