Term
Chapter 1
What is Capitalism? |
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Definition
| Capitalism is an economic system in which emplyers, using privately owned capital goods, hire wage labor to produce commodities for the purpose of making a profit (def from book). It is a formof economic order characterized by wage labor, the private ownership of production and pursuit of profit, with only minimum interference of such transactions by govt (def from class.) |
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Term
Chapter 1
What are some of the phenomena that have accompanied capitalism's spread? |
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Definition
| There has been more production per person and per country, a larger population, more money, more materialism, greater gap between the rich and the poor, urbanization, you work for someone else and rely on a paycheck instead of producing your own, more pollution and globar warming, the structure and function of family members has changed, the governments structure and its role has changed. |
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Term
Chapter 1
How has capitalism interacted with globalization to extend its reach? |
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Definition
| By outsourcing to other countries for our goods. Large companies can sell/produce their products anywhere in the world. The whole world is one global economy and countries are more interdependent on each other because of it. |
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Term
Chapter 2
Discuss the concept of self interest as the primary motivation of economic behavior? How do the various economic perspectives view this concept? |
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Definition
| People having a self interested disposition. They consider only how their actions will effect themselves, not how they will effect others. Concept of the economic man, says that people are governed by a self interested predisposition only. Neoclassical economists assume that people have entirely self interested preferences and make decisions based solely on how it will effect them and noone else. ** Other perspectives?? |
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