Question

Merchant capital funct 20) a) Buys dear and sells cheap b) Lends money and receives an interest c) produced commodities and sells them at a profit d) Buys to then resell at a higher price Part 2: True (T) or False (F); (40 points) Karl Marx acknowledged various positive traits associated with the development 1) of capitalism. The theory of comparative advantage, developed by John Maynard Keynes, shows a situation in which specialization and trade between two countries is beneficial to both parties. 2). 3) In a world without any surplus product, there would be no feudal lords. 4) One form the surplus product can take is the rents paid by serfs to feudal lords. 5) Commodities are goods produced by those that directly consume them. Certain demand curves can slope upwards. 6) 7) Equilibrium describes the usual outcome of markets under capitalism. 8) views about reality. According to Noam Chomsky, the media plays a crucial role in shaping our 9) behavior being guided by self-interest. Adam Smith's agreed with Thomas Hobbes' general assumptions about human 10) In his debate with Sam Bowles, Milton Friedman believes there is a place for markets in societies, just that they should be regulated. The total product equals the necessary product minus the surplus product

Answer 1

1. FALSE-

Reason- Karl marx critiqued capitalism and said that it will eventually lead to socialism. And that capitalism itself has its seed for destruction.

2. FALSE-

Reason- Theory of comparative advantage was given by David Ricardo and not Keynes.

3. TRUE-

Reason- Surplus product is whatever produced above the necessity.

4. TRUE-

Reason- Serf rent is surplus product for the feudal lord.

5. FALSE-

Reason- commodities are produced by producers and not by consumers.

6. True-

Reason- Giffen goods have upward sloping demand curve. When price rises quantity demanded also rises.