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- Examine the different views on capitalism (economical, political and historical) and the impact of capitalism on democracy
- Economists usually focus on the degree that government does not have control over markets (laissez-faire), and on property rights.
- Most political economists emphasize private property, power relations, wage labor, and class and emphasize capitalism as a unique historical formation.
- Market failure occurs when an externality is present and a market will either under-produce a product with a positive externalization or overproduce a product that generates a negative externalization.
- The extension of universal adult male suffrage in 19th century Britain occurred with the development of industrial capitalism, and democracy became widespread at the same time as capitalism, leading many theorists to posit a causal relationship between them—claiming that one affects the other.
- wage labor: The socioeconomic relationship between a worker and an employer, where the worker sells their labor under a formal or informal employment contract.
- voluntary exchange: Voluntary exchange is the act of buyers and sellers freely and willingly engaging in market transactions. Moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred.
- externality: In economics, an externality, or transaction spillover, is a cost or benefit that is not transmitted through prices and is incurred by a party who was not involved as either a buyer or seller of the goods or services causing the cost or benefit.