Deck 8: Classical Liberalism Defense of Industrial Capitalism

Question 1

Whats defention of terms:
-division of labor

Answer 1

subdivided tasks, each worker producing only the commodity for which his or her abilities are best suited

Question 2

Whats defention of terms:
-inert

Answer 2

unable to move or act, sluggish, lethargic

Question 3

Whats defention of terms:
-laissez-faire

Answer 3

a policy of leaving the coordination of individuals pursuing their own self-interest to the market-that the government should not be involved

Question 4

Whats defention of terms:
-psychological hedonism

Question 5

Understand the ideological basis for classical liberals to advocate for free trade and a minimum of government intervention.
-List and explain the four assumptions made by classical liberals about human nature.

Question 6

Understand the ideological basis for classical liberals to advocate for free trade and a minimum of government intervention.
-What did this doctrine imply about the motivations of workers and how they should be treated? What did it imply about the motivations of higher ranks of individuals?

Question 7

Understand the ideological basis for classical liberals to advocate for free trade and a minimum of government intervention.
-Compare and contrast the ideology of the classical liberals with that of those supporting Christian paternalism.

Question 8

Understand the ideological basis for classical liberals to advocate for free trade and a minimum of government intervention.
-How did classical liberals bridge the gap between egotistic humans who would only harm society if not for government and the need for an unfettered capitalist system?

Question 9

Understand the ideological basis for classical liberals to advocate for free trade and a minimum of government intervention.
-How do Smith and Hobbes differ in their views of the outcome of human competitiveness?

Question 10

Understand the ideological basis for classical liberals to advocate for free trade and a minimum of government intervention.
-What is the "invisible hand" of Adam Smith and how does it work?

Question 11

Understand the ideological basis for classical liberals to advocate for free trade and a minimum of government intervention.
-What does Adam Smith mean by division of labor? Why is this concept important?

Question 12

Understand the ideological basis for classical liberals to advocate for free trade and a minimum of government intervention.
-What three functions did classical liberals, and Adam Smith in particular, think that government should be responsible for? How did these three functions provide an additional advantage to the capitalists?

Question 13

Explain Thomas Malthus's Theory of Population and how it impacts society today.
-Malthus is often credited with giving economics the reputation of being the "dismal science." Why?

Question 14

Explain Thomas Malthus's Theory of Population and how it impacts society today.
-Compare the rates of growth for the population and the rate of grown for food. What is the outcome of this difference?

Question 15

Explain Thomas Malthus's Theory of Population and how it impacts society today.
-According to Malthus, there are preventative checks and positive checks to population growth. Compare and contrast the two "checks." What is the implication for aiding the poor?

Question 16

Explain Thomas Malthus's Theory of Population and how it impacts society today.
-According to Malthus, whose fault is poverty and why? Do you see any parallels in today's society? Give examples.

Question 17

The classical liberal psychological creed assumed human beings were

A) egoistic
B) altruistic
C) misanthropic
D) philanthropic

Question 18

Classical liberalism was highly influenced by Jeremy Bentham's psychological hedonism which is the view that

A) all human actions are motivated by a basic moral code.
B) all human actions are motivated by a desire to achieve pleasure and avoid pain.
C) all human actions are motivated by paternalism.
D) all human actions are motivated by instinct.

Question 19

Classical liberalism is based on atomism which is the view that

A) society is like a family.
B) society is more important than any individual.
C) society is merely an aggregation of individuals.
D) society is inherently oppressive.

Question 20

According to Thomas Hobbes, the outcome of the innate egoism of human beings will result in

A) a harmonious natural order.
B) a natural state of war.
C) long-term economic growth.
D) little or no need for a strong government.

Question 21

According to Adam Smith, the outcome of the innate egoism of human beings will result in

A) a harmonious natural order.
B) a natural state of war.
C) a dog-eat-dog world.
D) a need for a strong, activist government.

Question 22

The most important work of classical economic liberalism is

A) The Wealth of Nations by Adam Smith published in 1776.
B) The General Theory of Employment, Interest and Money by John M. Keynes published in 1937.
C) The Communist Manifesto by Karl Marx published in 1848
D) Capitalism and Freedom by Milton Friedman published in 1982.

Question 23

According to Adam Smith, the welfare of society will be maximized by

A) a strong, activist government.
B) a free and unrestrained market.
C) a strong and effective police force.
D) a good educational system.

Question 24

Economic progress depends on the capacity of an economy to produce, and productive capacity depends on

A) an accumulation of capital and division of labor.
B) an increasing population and the acquisition of skill.
C) universal education and health care.
D) natural resources and an effective government.

Question 25

Thomas Robert Malthus believed that

A) birth control and abstention were immoral.
B) population, if unchecked, tended to outstrip the available food supply.
C) England was too small to support its existing population.
D) technological progress would increase the available food supply.

Question 26

Thomas Malthus believed that there were preventives checks and positive checks on population growth. What are these preventive and positive checks?

A) preventive checks include restraint and birth control; positive checks include famine and war.
B) positive checks include restraint and birth control; preventive checks include famine and war.
C) positive checks include an expanding food supply; preventive checks include poverty.
D) positive checks include bribes and other monetary rewards; preventive checks include taxes and fines.

Question 27

The philosophy of leaving the allowing the market to operate without the intervention of government is called

A) laissez-faire
B) c'est la vie.
C) à chacun son goût.
D) comme ci, comme ça