BCOR 1015 MIDTERM 1 LATEST 2023 RATED A

BCOR 1015 MIDTERM 1 LATEST 2023 RATED A the main economic questions (rational economic problem) ✔✔1. What product am I making 2. who is going to make it 3. who gets the product scarcity is either... ✔✔real or articf ...

BCOR 1015 MIDTERM 1 LATEST 2023 RATED A the main economic questions (rational economic problem) ✔✔1. What product am I making 2. who is going to make it 3. who gets the product scarcity is either... ✔✔real or articficial hayek ✔✔believed that knowledge is incomplete, prices are the signals, decision making must be decentralized Hayeks view on markets ✔✔markets are a systematic process that allows us to pool knowledge hayek thinks economic problems arise due to ... ✔✔change Hayek thinks scarcity can be avoided by ✔✔technological advances and societal coordination economic competition between enterprises... ✔✔fuels the drive towards capital accumulation Hayeks view on goevrnment ✔✔favors decentralized planning Hayeks favored system ✔✔bidding system or market market economy ✔✔use price - Economic decisions are made by individuals or the open market. Central Planned Economy ✔✔decided by state - The central government makes ALL the decisions on production cox view on production ✔✔switch from production of profit to production of use would Hayek agree with cox ✔✔NO UBI ✔✔universal basic income conservatives would support this because it would streamline gov't programs rent control ✔✔the idea of price controls interferes with the market and price signals fairness ✔✔you get what you give agreeing what is thought to be right no discrimination equality ✔✔everyone gets the same state of being equal equity ✔✔- giving people more than others in order to achieve equal - justice in the way people are treated - freedom from bias why not socialism wrap up ✔✔- equalize and redistribute - threats to socialism are human nature (selfish) and limit of social technology - option luck ✔✔inequality that represents different preferences market luck ✔✔like a Casino friedman wrap up ✔✔- property rights are a matter of law and social convention - what is the justification of state intervention - what is the effect of measures taken - preferences and choices are okay with economic success - principle of market economy is the cooperation of voluntary exchange - capitalism allows for improvement of capacities taxing on the wealthy according to friedman ✔✔taxing the wealth does not lower their wealth it lowers consumption freedman's favored tax system ✔✔flat rate on income Friedman view on capitalism ✔✔leads to less long run inequality why does Cohen use a camping example ✔✔good example of socialist principles in a certain situation equality of outcome ✔✔we all reach the same finish line together equality of access ✔✔same opportunities equality of opportunity ✔✔no status restrictions community principles ✔✔focus on community egalitarian principles ✔✔- meaning that there are little to no distinctions in access or acquisition of status - equality of opportunity problems with socialism ✔✔1. social customs may limit (race, gender, Indian caste system) 2. unchosen social disadvantages (born into poor fam, society may aid through medicaid) 3. differences in prefernces (choice to be a surgeon or surf coach) Communal Reciprocity ✔✔Cooperation for its own sake Motivation is for the greater good Market Reciprocity ✔✔-Cooperation because it serves you to do so -Motivation is greed and fear friedman thinks... ✔✔unequal is fair payment in accordance to product ✔✔paid on the amount of product you make friedman view on redistribution through taxation ✔✔no no no friedman view on inequality ... ✔✔motivates people to work hard and take risk Einstein reading wrap up ✔✔- purpose of socialism to overcome the predatory phase of human development - capitalism is the source of evil - man is dependant on society - worker is in constant fear of losing his job - planned economy does not mean socialism (may enslave the individual and must prevent all powerful gov't) - must reeducate people - laws of ethics and science are different Hamburg and Schmidt ✔✔- CEO pay is determined by a board - favor shareholder cooperation - CEO are paid too much kaplan ✔✔- awarded pay : salary, bonus - realized pay : value of stock options at the exercised value - CEO help generate great amounts of corperate earnings - market forces = determinant of CEO pay okun views ✔✔- tradeoffs - equality and efficiency - do not put rights in the domain of market - rights should be universal, free, nontransferable - the pursuit of efficiency will create inequality - domain of rights=the universal entitlement to rights okun libertarian ✔✔- rights protect the individual - limited govt whose power is explicit and objective okun pluralism ✔✔- diversification - rights are viewed as protection okun humanism ✔✔- the human dignity of all citizens - self-respect - the sense of justice as fairness hardin ✔✔- morality - population problem!!!!! - problems with solving it (not possible to maximize two things at once & every organism must have a source of energy) - doesn't agree with adam smiths invisible hand - common resources result in inefficient allocation of resources - lack of well-defined property rights cause environmental problems (water allocation) helbling wrap up ✔✔- private returns are smaller than social returns - inefficies with technical externalities constitute a form of market failure - public goods are underproduced bc you cant profit - externalities are overproduced - govt intervention is often required to ensure benefits & costs are fully internalized Hassett wrap up ✔✔- agrees with Okun - tradeoff of equality - heavy redistributions have done worse - the more taxes & transfer from govt reduce gini coefficient kruggman ✔✔- CEO are paid too high - whats good for top 1% is not good for the rest - the poor who are uneducated are a waste of human capital public goods ✔✔nontrivial and nonexcludable (defense) direct cost ✔✔cost from manufacturers indirect cost ✔✔cost resulting from operations NOT by manufacturers jacobs reading ✔✔china is going elsewhere to fish bc they used all theirs. indonesia is now burning their coastline for rice bc china took their fish. other people are out of a job negative rights ✔✔- Rights a government may not infringe upon - no one interfere positive rights ✔✔- rights that come from the government's ability to act - requires other to provide you with a good or service Adam smith promotes ✔✔efficiency palmer wrap up ✔✔- no where in the constitution does it state that water is a right - positive human rights would say that govt should provide a basic standard of living pardy wrap up ✔✔- there is no legal right to water - scarce water at a subsidized price removes scarcity - the tragedy of the commons would occur - public goods do not have a good allocation - degradation of resources awash in waster wrap up ✔✔- treating water as a right makes scarcity worse - water is hugely wasted (Australia) little wrap up ✔✔- there is little govt funding for water companies - privatizing is okay hauter wrap up ✔✔- water is a human right - we would have to pay a lot for water companies - water would be too expensive for some familes water comments ✔✔- water as a whole is not scarce > drinking water is - if it is privitized but not monopolized the companies would need their specific pipes (inefficient) - okun says "put it in the market" and it gets better bc it has tech innovation