Economics 1021A/B Study Guide - Quiz Guide: Infinite Loop, Consumerism

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: bruce hammond

Document Summary

Workers rent out their labour, providing the surplus of the labour in the form of profit for their employees. The system is also anarchic and unplanned due to the lack of socio-economic regulations, which lead to unintended consequences. These consequences can be wealth disparity, pollution, unemployment, etc. Coal is cheap economically speaking, but when factoring ecological and biological damage to humans and the environment, it costs much more. Due to competition, companies are constantly trying to maximize sales and profit to have a larger market share. Capitalism has an infinite loop of profit providing funds to accumulate capital, which is used to accumulate profit, to not stick to this loop would mean the death of the business. Economic growth per capita has risen dramatically in the us, however life satisfaction has remained the same, distrust, depression have increased. The capitalist system also makes it so that consumption is a significant part of our livelihood.