ECOP1001 Lecture Notes - Lecture 5: Monopoly, Investment, Spheres Of Exchange

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The capitalist mode of production according to marx and the role and nature of the circuit of capital. The ve conditions for capital accumulation to occur and the changes arising from the accumulation process. The accumulation process can lead to simple or expanded reproduction (the issue of economic growth). Marx sought to explain the social relations of capitalism: the way production is organised and the basis on which society is constructed. Marx divided society into: an economic base (the mode of production), a social (ideological) superstructure. The economic base comprises two elements: 1. Forces of production comprising tools, factories, labour and its level of knowledge: 2. Relations of production comprising class structure, social relationships among people (especially in relation to capital). The capitalist mode of production is distinguishable by: the operation of labour from ownership of the means of production, ownership of the means of production by a minority, a class dependent on the sale of its labour.

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