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3. A “zero-sum” game by definition means that the amount of wealth in the world is fixed and that for every dollar one person gains, some other person must lose a dollar. Greed is often associated with “zero-sum” games but in a capitalist system this analogy doesn’t apply.

1. What is a “zero sum game”?
2. Why is our market system NOT a zero sum game?

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Answer:

Step-by-step explanation:

1. A “zero sum” game is when the amount of wealth in the world is fixed and the gain or loss of one party directly affects the gain or loss of another party. It is a situation in which a participant’s gain or loss is exactly balanced by the losses or gains of the other participant(s). An example of a zero sum game is a game of chess, where the winner takes all the pieces.

2. In a capitalist system, our market system is not a zero sum game. This is because it allows for the creation of wealth, meaning that one party can gain without the other party having to lose. When one party gains, it does not necessarily mean that the other party has to lose. It is possible for both parties to gain in certain transactions. This is possible because in a capitalist system, the economy is not a zero sum game, but rather an expanding system in which new wealth can be created. This type of system encourages innovation, competition, and the development of new products and services. This creates an environment where both parties can gain, rather than one party having to lose for another to gain.

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