Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The competition among capitalists drives wages down
B
Increased consumer demand for products
C
Government regulations on production
D
Technological advancements improving efficiency
Understanding the Answer
Let's break down why this is correct
Answer
In Marxist theory, an economic crisis often happens when production exceeds consumption because of the way capitalism works. Capitalists produce goods to make a profit, but they focus on producing more and more without considering whether people can actually buy what they make. This leads to a situation where there are too many goods and not enough buyers, causing businesses to lose money and sometimes even fail. For example, if a factory makes a lot of shoes but people can't afford to buy them, the factory might have to close, which then leads to job losses and even less money circulating in the economy. This cycle of overproduction and underconsumption can create tension between different classes, as workers lose their jobs and capitalists struggle to maintain their profits, leading to potential conflicts and calls for change.
Detailed Explanation
In Marxist theory, competition among business owners pushes them to lower wages. Other options are incorrect because Some might think that if people want more products, there won't be a crisis; One might believe that government rules stop production from causing crises.
Key Concepts
Class Conflict
Marxist Theory
Economic Crises
Topic
Class Conflict and Revolution
Difficulty
easy level question
Cognitive Level
understand
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