How political systems and economic systems interact, including capitalism, socialism, and mixed economies from a political science lens.
30 cards · basic cards · AI-written, checked twice. Edit anything.
- What does political economy study?
- The interaction between political systems and economic systems, and how power shapes economic outcomes.
- What is the defining characteristic of capitalism?
- Private ownership of productive resources and market-driven allocation of goods and services.
- What is the defining characteristic of socialism?
- Collective or state ownership of productive resources and centralized or democratic control of production.
- What is a mixed economy?
- An economic system combining market mechanisms with state intervention and regulation, found in most modern nations.
- What economic concept did Adam Smith develop?
- The invisible hand, the idea that individual self-interest in markets leads to efficient resource allocation.
- What role does the state play in capitalist economies?
- Enforcing property rights, contracts, and rules; regulating markets to prevent monopolies and protect consumers.
- How does a planned economy differ from a market economy?
- A planned economy uses central direction to allocate resources; a market economy relies on price signals and consumer choice.
- Why are private property rights central to capitalism?
- They incentivize investment and innovation, enable voluntary exchange, and allow individuals to profit from assets.
- Under socialism, who controls productive resources?
- The working class collectively, either through state institutions or through direct democratic control of workplaces.
- What does commodification mean in political economy?
- Treating goods, services, or labor as commodities to be bought and sold in markets for profit.
- What is rent-seeking behavior?
- Using political power to gain economic benefits without creating new wealth, such as lobbying for monopoly protection.
- What is regulatory capture?
- When regulated industries gain influence over the regulators meant to oversee them, bending rules in their favor.
- What is a welfare state?
- A state that provides social safety nets such as healthcare, unemployment benefits, and pensions to protect citizens.
- What is social democracy?
- A political-economic system combining capitalism with extensive government intervention, high taxes, and robust welfare and labor protections.
- What does neoliberalism emphasize?
- Free markets, deregulation, privatization, and minimal state intervention in the economy.
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