BCOR 1015 MIDTERM 1 EXAM STUDY GUIDE WITH COMPLETE SOLUTIONS

BCOR 1015 MIDTERM 1 EXAM STUDY GUIDE WITH COMPLETE SOLUTIONS the main economic questions (rational economic problem) - Answer️️ -1. What product am I making 2. who is going to make it 3. who gets the product scarcity is either... - Answer️️ -real or articficial hayek - Answer️️ -believed that knowledge is incomplete, prices are the signals, decision making must be decentralized Hayeks view on markets - Answer️️ -markets are a systematic process that allows us to pool knowledge hayek thinks economic problems arise due to ... - Answer️️ -change Hayek thinks scarcity can be avoided by - Answer️️ -technological advances and societal coordination economic competition between enterprises... - Answer️️ -fuels the drive towards capital accumulation Hayeks view on goevrnment - Answer️️ -favors decentralized planning Hayeks favored system - Answer️️ -bidding system or market ©SOPHIABENNET@2024/2025 Monday, August 19, 2024 10:32 PM 2 market economy - Answer️️ -use price - Economic decisions are made by individuals or the open market. Central Planned Economy - Answer️️ -decided by state - The central government makes ALL the decisions on production cox view on production - Answer️️ -switch from production of profit to production of use would Hayek agree with cox - Answer️️ -NO UBI - Answer️️ -universal basic income conservatives would support this because it would streamline gov't programs rent control - Answer️️ -the idea of price controls interferes with the market and price signals fairness - Answer️️ -you get what you give agreeing what is thought to be right no discrimination equality - Answer️️ -everyone gets the same state of being equal equity - Answer️️ -- giving people more than others in order to achieve equal - justice in the way people are treated ©SOPHIABENNET@2024/2025 Monday, August 19, 2024 10:32 PM 3 - freedom from bias why not socialism wrap up - Answer️️ -- equalize and redistribute - threats to socialism are human nature (selfish) and limit of social technology - option luck - Answer️️ -inequality that represents different preferences market luck - Answer️️ -like a Casino friedman wrap up - Answer️️ -- 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 - Answer️️ -taxing the wealth does not lower their wealth it lowers consumption freedman's favored tax system - Answer️️ -flat rate on income Friedman view on capitalism - Answer️️ -leads to less long run inequality ©SOPHIABENNET@2024/2025 Monday, August 19, 2024 10:32 PM 4 why does Cohen use a camping example - Answer️️ -good example of socialist principles in a certain situation equality of outcome - Answer️️ -we all reach the same finish line together equality of access - Answer️️ -same opportunities equality of opportunity - Answer️️ -no status restrictions community principles - Answer️️ -focus on community egalitarian principles - Answer️️ -- meaning that there are little to no distinctions in access or acquisition of status - equality of opportunity problems with socialism - Answer️️ -1. social customs may limit (race, gender, Indian caste system) 2. unchosen social disadvantages (born into poor fam, society may aid