WOB Mid-Term

The chairs’ game showed that when resources are _____________, it is important for society to have an efficient _____________ mechanism of those resources.  

Scarce, allocation

The seminal reading author for Day 2 is _____________.

Friedrich August von Hayek

The problem we want to solve when trying to “construct a rational economic order” is how to get people the things they most _____________, efficiently, when those things are _____________ and desires are _____________.

Want , Scarce, Unlimited

In order to construct rational economic order we must 1. We have to “possess all relevant _____________”

Information

In order to construct rational economic order we must 2. To know what people want, we “start out from a given set of _____________”

preferences

In order to construct rational economic order we must 3. To know how to get them what they want, we have to have a “complete knowledge of available _____________.”

means

The two types of knowledge in society are _____________ and _____________

Scientific , local

Accordingly(to Hayek), economic decision‐making should be _____________

Decentralized

What does “No Single Mind” mean?  “The economic problem of society is thus not merely a problem of how to allocate `given’ resources”… but “it is a problem of the _____________ of knowledge not given to anyone in its totality.”  

Utilization

The _____________ system allows millions of individuals to coordinate their actions effectively, even though each person only knows a small part of the overall economic picture.

Price

Prices solve two main problems: the _____________ problem and the _____________ problem.  

Information and incentive

What is the “kind of machinery for registering change”? _____________

Price system

What “provide[s] inducements which will make the individuals do the desirable things without anyone having to tell them what to do”? _____________

inducements from price system

Why is centralized planning challenging?

No one has complete information and knowledge of means. Assumes set of preferences, low incentive.

What is arbitrage? ______________________________________ Is Hayek okay with it? ______   Why?

Selling something for more than you bought it for , is ok with it because represents scaracity of product and price system at work

Uber employs a _____________ pricing algorithm.

Dynamic

One of the application day authors for Day 3 are

Armen Albert Alchian

One of the application day authors for Day 3 are

Thomas Bethell

One of the application day authors for Day 3 are

Robin Cox

One of the application day authors for Day 3 are

Richard Oxenberg

According to  _____________  , what are the three key attributes of private property rights?

Armen , Exclusive right of use , Exclusive right to services of a resource, Exclusive right to exchange the resource

___________ said “private property is the guardian of every other right” and showed how private property rights are associated with prosperity.  

Arthur Lee

According to  _____________ , we have a _____________ right to acquire property. Property passes into private ownership, becomes yours, by way of your _____________.  Property should 3 be put to _____________ in order to remain privately owned; otherwise it will spoil. The _____________  exists (in part) to protect our right to acquire property.

John Locke, Natural, Labor, Use, Government

John Lock Believes

Natural rights to property

Contracarians believe

Social contracts of property use/ownership

Who believed artificial scarcity, Socially useless production, and surplus value?

Robin Cox

While equality is an objective measure of sameness, fairness in a _____________ measure because not everyone agrees what is “fair.”

Subjective

One of the seminal reading authors for Day 2 are

Gerald Allan Cohen

One of the seminal reading authors for Day 2 are

Milton Friedman

Two principles are realized on the camping trip, an _____________ principle and a principle of _____________.”

Egalitarian , community

  In “Why Not Socialism?” _____________ does not advocate for market reciprocity but for _____________ reciprocity.

Cohen , Communal

Cohens camping analogy represented a market without

incentives

Socialism is humanity’s attempt ‘to overcome and advance beyond the _____________ phase of human development.

Predatory

Formal Equality of opportunity

Removal of explixit legal and institutional barriers

Fait Equality of opportunity

Removing background conditions to support equlaity such as poverty etc

Luck Egalitarianism

Neutralizing / providing equality from luck you do not choose rather than option luck that you do choose.

Cohen belives which luck is the truley problamatic inequality

Option luck

Cohen views unequal wages as _____________

Unjust

Friedman view unequal wages as a _____________ and necessary outcome of a free market, as they reflect differences in productivity and incentivize innovation, benefiting society as a whole.   

natural

Societies that put _____________ before _____________  get neither. Societies that place _____________  over _____________  get a fair measure of both.

Equality , Freedom , Freedom , Equality

One of the authors for Day 3 are

Albert Einstien

One of the authors for Day 3 are

Kurt Vonnegut Jr

According to _____________, capitalism rewards competition, which encourages selfishness and erodes the social part of who we are. “The worst evil of capitalism” is the crippling of _____________.”

Albert Einstien , Individuals

Einstien was in support of

Socialism

The fictional short story “Harrison Bergeron” is a satire that illustrates the dangers of forced _____________.

equality

_____________ systems describe how laws are created and enforced.  

Legal

2. _____________ institutions range from democracy to totalitarianism, and

Political

Reading authors for Mod 3 Day 2 include :

Adam Smith

Reading authors for Mod 3 Day 2 include :

Karl Marx

_____________  criticizes  _____________, according to which the wealth of a nation is measured by the size of its treasury

Adam Smith , Mercantilism

Adam Smith believes that _____________, when freely initiated, is mutually beneficial to both parties.  

Voluntary exchange or trade

According to _____________ and _____________, the history of society is “the history of _____________ struggles” where the oppressors are the _____________ and the oppressed are the _____________.  

Karl Marx , Fridrich Engels , class , bourgeoisie , proletariat

One author for Mod 3 Day 3 is

P Kelly and M Graglia

One author for Mod 3 Day 3 is

Leonard E Read

One author for Mod 3 Day 3 is

Hernando de Soto

According to _____________, weak _____________ explains why capitalism “triumphs in the west” and fails elsewhere.  The poor are held back by a lack of property _____________.   “Capital is now confused with _____________, which is only one of the many forms in which it travels.”

Hernando De Soto , Property rights , titles , money

2 types of Capital According to Hernando De Soto

Formal/legal Capital or Dead Capital