SOJO Quiz

Myth of the Market

The market is man-made and dependent on tradition and command; it deals well with small changes and generates freedom, functioning on self-interest.

Economic Stork Theory

No explanation for how workers arrive in the labor market; families and mothers are deemed 'useless' because work is categorized as either paid work or leisure.

Partially Useful Individuals (PUI)

Individuals who spend some time doing paid work.

Totally Useless Individuals (TUI)

Individuals who spend no time doing paid work and are thus considered useless to the market.

Monopsony

A market situation where concentrated ownership leads to one buyer for rural labor, resulting in declining employment, wages, and output.

Import substitution

The practice of making cheap knockoffs of imported goods domestically, developing skills and knowledge, exemplified by Taiwan.

Kuznet’s Curve

The theory suggesting a relationship between economic development and inequality, whereby inequality rises then drops as a country develops, despite being speculative.

Instant Westernization

Imposing infrastructure like dams and highways that disrupt local economies and enrich elites at the public expense while accruing high debts.

Human Development

A focus on improving factors such as birth control and education, which are often more costly than infrastructure projects yet have little impact on overall development.

Structural Adjustment Programs

Policies imposed by international financial institutions that require free market principles and conditions, leading to economic stagnation and instability.

Four Pillars of Liberalism

Key principles including Balance of Power, Gold Standard, Self-regulating markets, and Liberal State, all of which faced significant failures.

Telos of trade

The objective to distribute the resources of God fairly and justly, based on the Universal Destination of Goods.

Trade development cycle

A process where real wealth leads to exports, which then lead to imports and substitution, enriching local economies.

Anarchic optimism

The belief that people are innately good, can self-govern, and don't need the state, supported by examples from disasters.

Authoritarian pessimism

The view that without a state, life is chaotic and miserable, rooted in Hobbes' social contract theory.

Unitary state

A political structure where all power is concentrated in a central sovereign authority.

Diarchy

A system where two powers coexist, with authority granted to the church and power to the prince, historically endorsed by popes.

Integralism

A tradition that posits politics should guide humans toward their final goal, merging religious and secular authority.

Agency dilemma

The conflict where profit increases by lowering wages, potentially reducing the consumer market.

Lagun-aro

A social fund with significant assets, totaling $7 billion.

Co-management

A collaborative approach to management responsibilities involving both management and workers.

Principle of reciprocity

A concept emphasizing trust and cooperation over contractual agreements, based on voluntary and mutual favors.

General council

The concept of workers acting as owners within an organization.

Social council

The perspective of owners acting as workers.

Caja Laboral

An institution promoting entrepreneurship that recycles funds within cooperatives and has significant financial assets.