040 Capitalism Study Guide - STUDY GUIDE: "CAPITALISM...

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S TUDY G UIDE : “C APITALISM 101” Using this study guide The following document has all of the terms, quotes, lists, and ideas contained in the most recent powerpoint presentation (note: I change these frequently so some variations may exist). As a result, you should not feel that you need to copy any of this information while in class. THERE WILL BE NO TERMS OR ESSAYS QUESTIONS TAKEN FROM THIS LECTURE. THE MATERIAL CONTAINED WITHIN THE LECTURE, HOWEVER, WILL GREATLY INFLUENCE HOW WE DISCUSS ECONOMIC CHANGE IN HISTORICAL CONTEXT. Economic Systems Capitalism, Communism, Feudalism, Slavery, etc. Trial K??? Not religion Not civic republicanism/patriotism Not sacred or moral. Simply a way people earn the means to stay alive and thrive. Economic systems are “Controllable,” but they are also very complex. For pure capitalism, this means complete individual freedom of choice For pure socialism, it means choice for society as a whole America today (and most modern societies) fall between these two ideals Economic systems are “Predictable,” but only by those who control capital: Credit Ratings determine how much we pay for loans; but credit rating can FALL if we pay off our credit cards; loans more expensive! Companies pay different salaries for the same work (gender, race, age, and now nationality). It is predictable, but based on goals of capital (most productive use of capital) Two Types of Capitalism (1) Merchant/Mercantile Capitalism Adam Smith: Supply and Demand, Hidden Hand of Marketplace, Buy Low Sell High Profit comes from selling something that others want now Basis for American export-import economy before Civil War Businesses easy to start up; firm usually dies with the owner Credit are go down today, … Ex: selling beer $2/6 pack
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040 Capitalism Study Guide - STUDY GUIDE: "CAPITALISM...

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