Professional Documents
Culture Documents
Overview
This chapter discusses the morality of the
market system as a whole. It examines how
market systems are justified, and explains the
relative strengths and weaknesses of the various
systems currently in use.
There are two basic viewpoints: one says that
the business system should be planned; the
other that it should be a free market system.
After examining the arguments for and against
free markets and government regulation, the
chapter discusses the possibility of a hybrid
mixed economy system.
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Learning Objectives
Understand the basic arguments for and against free
markets and central planning.
Recognize how these arguments are based upon
ideology.
Explain how John Locke (1632-1704) and Adam Smith
(1723-1790) make the case for free markets.
Understand the major criticisms of these free market
theories, especially those of John Maynard Keynes
(1883-1946) and Karl Marx (1818-1883).
Explain how Social Darwinism is connected to the free
market economy.
Understand the effect of new technologies on free
market assumptions about property rights.
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Command economy.
Key Terms
Absolute advantage; Aggregate demand; Alienation;
Bourgeoisie; Command economy; Copyright;
Communitarianism;
Economic system; Economic substructure; Forces of
production; Free market system;
Globalization; Historical materialism; Ideology; Immiseration;
Individualism; Intellectual property; Invisible hand;
Keynesian economics; Lockean rights;
Markets; Means of production; Mixed economy; Natural
rights; Naturalistic fallacy;
Patent; Post-Keynesian school; Private property system;
Proletariat; Relations of production;
Says law; Social Darwinism; Social superstructure; State of
nature; Surplus value; Survival of the fittest; Tradition based
societies.
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