BCOR 1015 Final Exam 2023 Questions and Answers Verified

BCOR 1015 Final Exam 2023 Questions and Answers Verified What are Hayeks views on planning and decision making? he believes in decentralized knowledge HAYEK: what is decentralized knowledge? spreading knowledge amongst people is Hayek against centralization? yes HAYEK: how does the price system coordinate resources? price signals are used to make decisions and send information to other groups because prices are lower or higher what are price signals? signals wrapped up in incentives; prices can constantly adapt and update in response to new information HAYEK: what is arbitrage? benefitting from peoples ignorance; buying something cheap at a flea market then re-selling at a higher price Does Hayek argue that arbitrage is moral or immoral? arbitrage is moral if its helping allocate resources What article did Cohen write? Why not socialism COHEN: what is the bourgeois equality of opportunity removal of socially constructed status restrictions COHEN: what is the leftest liberal equality of opportunity removal of the disadvantages of circumstances, even if not socially constructed (but leaves differences in opportunity related to "naive or inborn traits") COHEN:what is the socialist equality of opportunity corrects for all unchosen disadvantages, that is, for which the agent cannot be held responsible, whether they be disadvantages What were the three inequalities Cohen thought existed? 1. Laws (formal) 2. Unchosen Social Disadvantages (informal) 3. Raw Talent Because of these 3 things, he wanted to diminish the equality of opportunity COHEN: what is the relationship between equality and community? According to cohen reducing inequality involves both equalizing and also a redistribution policy Is Cohen a socialist? yes FRIEDMAN: is income equality or inequality fair? he thinks inequality should be allowed due to practical and moral reasons COHEN: what did he believe in, in regards to redistribution? Believed in redistribution through a flat tax rate - equality People w/ higher incomes get taxed more than poor people and that is UNFAIR COHEN: if people are willing or prefer to work harder jobs, they should or should not be paid more?