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Difficulty: MediumCapitalism and Socialism

Karl Marx argued that the fundamental flaw of capitalism lies in the systematic exploitation of the working class (proletariat) by the owners of the means of production (bourgeoisie). According to Marxist socialist doctrine, which concept specifically describes the uncompensated value generated by labor that is appropriated by capitalists as profit?

  1. A
    Laissez-faire equilibrium
  2. Surplus valueAnswer
  3. C
    Privatization dividend
  4. D
    Capital accumulation

Answer

Surplus value
In Marxist political economy, surplus value is the precise term for the value created by workers beyond what is paid to them in wages, which capitalists claim as profit. This concept forms the theoretical backbone of socialist arguments against capitalism.

Step-by-Step Solution

1
Analyze Karl Marx's critique of the capitalist system.
Marx posited that profit under capitalism stems directly from extracting unpaid work from labor.
Understanding the foundational economic tenets of socialism requires identifying key Marxist terminology regarding class relations.
2
Identify the specific term describing uncompensated labor value.
Surplus value is defined as the difference between the total value produced by a worker and the wage paid to that worker.
This appropriated value forms the basis of capitalist profit and worker exploitation in Marxist doctrine.

Key Concept

Marxist Theory of Surplus Value
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Topics

Capitalism and Socialism

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