Knowing that a neoclassical, capitalist economy depends on continuous economic growth (by making its production, distribution, and consumption more efficient), what might a savvy political economist say in argument against the prevailing economic system? Answer a. The economic individual maximizes her utility, is self-interested and rational; therefore, her endeavors will be successful with hard work. More of her peers should look to her; that attitude would really help our economy grow. b. The government should assist the economy by giving large amounts of money to help improve the efficiency of a few big firms during slow economic times and let inefficient, smaller firms file for bankruptcy. c. The earth's resources are finite, and the economy depends on those finite resources because it is a subset of the environment. Thus, there are biophysical limits to growth, and the neo-classical economy should re-think its system before it dooms our planet. d. I don't want to be a political economist anymore. It's too hard, the system is already set in its ways. I want to get a job that makes a lot of money! Which of the follow is NOT a characteristic of capitalism?
a. private ownership
b. pursuit of profit
c. government control of the economy
d. competition and consumer sovereignty
An institution through which buyers and sellers interact and engage in exchange is Answer
A. a central authority.
B. a market.
C. a production frontier.
D. "laissez-faire.
" Which of the following does NOT explain the breakdown in feudalism? Answer A. Breakdown of the guilds B. Rise of Catholicism C. Urbanization D. Creation of the Nation-State.