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Social Contract Theory: Thomas Hobbs - ANSWER-In a natural state, no
government exists. People surrender the power to the state to maintain order.
People do not have the right to break the agreement.
Social Contract Theory: John Locke - ANSWER-People are naturally endowed
with the right to life, liberty and property. They willingly contract power to
government to protect these rights. People have the right to break this
agreement.
Force Theory - ANSWER-Government was created when all the people of the
area were bought under the authority of one (by force).
Capitalism - ANSWER-Freedom of choice and individual incentive.
1. Private ownership and control of property and economic resources.
2. Free enterprise
3. Competition among businesses
4. Freedom of choice
5. The possibility of profits
John Locke - ANSWER-Two treaties of Government: people need government
to maintain social order and cannot live in groups without conflict.
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, Abraham Lincoln - ANSWER-Government should do for the community
whatever they need to promote general welfare - individuals could or would not
do on their own.
Evolutionary Theory - ANSWER-The state evolved from family. The head of
the family is the government.
Divine Right Theory - ANSWER-The state was created by god. The divine has
chosen people to rule.
Governments purpose - ANSWER-Maintain social order, provide public
services, provide national security, and control the economic system.
Economic systems do the following... - ANSWER-1. What and how much
should be produced, 2. How goods and services should be produced. 3. Who
gets the goods and services that are produced.
Adam Smith (1776) - ANSWER-Buyers and sellers were free to make unlimited
economic decisions in the marketplace. Free enterprise: decisions made by
buyers and sellers
Socialism - ANSWER-Government owns the basic means of production,
decides how to use resources, distributes products and wages, provides social
services.
1. Distribution of wealth and economic opportunity equally among people
2. Society's control, through its government, of all major decisions about
production
3. Public ownership of most land and factories