Philosophy Exam Review

These flashcards cover key vocabulary and concepts from the philosophy lecture notes.

Smith, 'On the Division of Labor'

A foundational text exploring how the division of labor increases productivity and economic efficiency. Main Points: Specialization leads to greater efficiency, impacting production and economic growth. Examples: Manufacturing plants that produce automobiles, where each worker focuses on a specific task like painting or assembling components.

Locke, 'What is a Fair Price?'

An essay discussing the nature of price fairness in economic transactions and the factors influencing what is considered fair. Main Points: Prices should reflect both the value of goods and fairness in exchange; conditions such as supply, demand, and mutual consent play a crucial role. Examples: Negotiating prices for handmade goods at a local market, where both the seller and buyer agree on terms that reflect perceived value.

Hayek, 'Of the Use of Knowledge in Society'

An important work examining how dispersed knowledge in society affects decision-making and the functioning of markets. Main Points: Knowledge is decentralized, making centralized planning inefficient; market prices convey information that helps coordinate individual actions. Examples: Stock market fluctuations representing collective knowledge about various companies, guiding investors in their buying and selling decisions.

Read, 'I Pencil'

An essay illustrating the complexity of production and the interdependence of various individuals and industries through the simple pencil. Main Points: No single person knows how to make a pencil; it demonstrates the power of free markets and the coordination achieved through voluntary cooperation. Examples: The different materials sourced from various regions (wood, graphite, and metal) and the numerous individuals involved in their extraction and manufacturing.

Becker, 'The Economic Way of Looking at Behavior'

A piece advocating for the application of economic principles to examine social behavior, human interactions, and decision-making. Main Points: Economic theory can be applied to many non-economic behaviors, as individuals make choices based on cost-benefit analyses. Examples: Decisions regarding education, where individuals weigh the costs of tuition against potential future earnings.