C block economics

    Master this deck with 21 terms through effective study methods.

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    Created by @m_thfddd

    What defines Economics?

    Analyzes choices made to allocate limited resources.

    What are the three questions every economy must answer?

    What to produce, how to produce it, and for whom.

    What is a Social Science?

    Studies human behavior and relationships in society.

    What distinguishes positive statements from normative statements?

    Positive statements are factual; normative reflect opinions.

    What is the consequence of narrow or biased thinking in economics?

    Limits understanding by ignoring multiple perspectives.

    What are the three broad fields of Economics studied at school?

    Microeconomics, macroeconomics, and contemporary economics.

    Who is known as the father of modern economics?

    Adam Smith.

    What defines Capitalism?

    Trade and industry controlled by private owners for profit.

    How does Adam Smith's concept of 'perfect liberty' relate to capitalism?

    It emphasizes market-determined wages and free entrepreneurship.

    What is a key issue associated with capitalism?

    Creates unequal distribution of wealth.

    Who is Karl Marx?

    The economist behind Communism, known for critiquing capitalism.

    What is the main idea of Marx's 'Das Kapital'?

    It describes capitalism's self-destructive nature due to wealth inequality.

    What does Marx criticize about the Communist system?

    Lack of profit motive leads to reduced effort and corruption.

    Who is John Maynard Keynes?

    The economist associated with mixed economic systems and government intervention.

    What is Keynes's view on fiscal policy?

    It should be used to counteract economic recessions and achieve full employment.

    How did Keynes's ideas influence economies?

    His policies were widely adopted by capitalist governments in the late 1930s.

    Who is Milton Friedman?

    The economist known for monetarism and advocating for money supply control.

    What did Friedman argue against Keynesian economics?

    He emphasized the importance of controlling the money supply over government intervention.

    What is stagflation?

    A situation of stagnant economic growth combined with inflation.

    What is the significance of the Phillips curve?

    It illustrates the trade-off between inflation and unemployment, challenged by Friedman.

    What triggered the Keynesian resurgence in 2008?

    The financial crisis led to renewed interest in Keynesian economic policies.