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Jake Opens a Pig Farm in Idaho

question 96

Essay

Jake opens a pig farm in Idaho. To start his farm, he uses his entire $50,000 of savings from his savings account. The bank was paying him $2,500 interest on his saving. Explain why the $2,500 is one of Jake's costs.


Definitions:

Capitalism

An economic system based on private ownership and the free market, characterized by the pursuit of profit.

Lumpenproletariat

A term coined by Marx to describe the class of outcasts in society, such as the unemployed and criminals, who are not involved in industrial production.

Proletariat

The proletariat is a term used in Marxist theory to describe the class of workers who do not own the means of production and must sell their labor power to survive.

Bourgeoisie

The class in capitalist societies that owns the means of production and employs wage labor, historically associated with wealth and societal power.

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