Deck 12: Neoclassical Economics Defense of Corporate Capitalism

Question 1

Whats defention of terms:
-encyclical

Answer 1

letters from the pope intended for wide circulation

Question 2

Whats defention of terms:
-teleological

Answer 2

characterizes events that are guided by natural and mechanical forces toward a final outcome in which each succeeding generation is superior to the preceding one

Question 3

Whats defention of terms:
-utility

Answer 3

a measure of pleasure or satisfaction

Question 4

Summarize neoclassical ideology with respect to production, consumption, and government intervention.
-What is the difference between competitive and corporate capitalism?

Question 5

Summarize neoclassical ideology with respect to production, consumption, and government intervention.
-Explain the theory of consumer utility. Do you see any problems with quantifying pleasure? How does this theory relate to businesses?

Question 6

Summarize neoclassical ideology with respect to production, consumption, and government intervention.
-Exactly how much pleasure or utility do you receive from eating a banana? A second banana?

Question 7

Summarize neoclassical ideology with respect to production, consumption, and government intervention.
-How was the neoclassical view of the economy, i.e. small firms with no pricing power, inconsistent with reality?

Question 8

List and explain the five modifications made to neoclassical thought by subsequent generations.
-Discuss what problems each of the five modifications means to a competitive market outcome.

Question 9

List and explain the five modifications made to neoclassical thought by subsequent generations.
-Compare and contrast laissez-faire to social Darwinism. Specifically, how did these two views support the existence of income inequality? Why were some people poor while others were rich?

Question 10

List and explain the five modifications made to neoclassical thought by subsequent generations.
-Why was the idea of laissez-faire championed by the business elite? What special privileges did the government already give to these businesspersons?

Question 11

List and explain the five modifications made to neoclassical thought by subsequent generations.
-Does the present government of the United States have a laissez-faire policy?

Question 12

Articulate the major ideas of the new Christian paternalist ethic.
-How did the new Christian paternalistic ethic support the wealthy capitalists? How did it differ from the feudalistic version?

Question 13

Articulate the major ideas of the new Christian paternalist ethic.
-According to Patten, why is competition harmful?

Question 14

Which of the following was not an important early neoclassical economist?

A) Erving Segal
B) William Stanley Jevons
C) Karl Menger
D) Leon Walras
E) none of the above

Question 15

Which of the following does not characterize neoclassical economics?

A) the division of society into the working class, the capitalist class, and the landlord class.
B) the analysis of households and business firms.
C) the assumption that businessmen are motivated only by the desire for profit.
D) the belief that free competition leads to optimal results.
E) the elaboration of Adam Smith's notion of the "invisible hand."

Question 16

The neoclassical theory of consumption

A) argued that it was not generally a fatal disease.
B) asserted that consumers would equate the additional utility per dollar spent, for the last dollar spent on each commodity.
C) asserted that the total numbers of dollars spent on each commodity would be proportionate to the prices of each commodity if the consumer maximized his utility.
D) argued that the utility of a commodity depended upon the price of that commodity.
E) none of the above.

Question 17

The neoclassical theory of production

A) emphasized the importance of the social and cultural foundations of productive technology.
B) stated that the last dollar spent on each factor should yield the same increase in production from all factors.
C) showed the laborers could not be very productive if they suffered from inadequate food, shelter, and clothing because they were paid such low wages.
D) showed that businessmen did not necessarily attempt to maximize profits in all cases.
E) all of the above.

Question 18

Which of the following as not a modification of neoclassical theory that was frequently made by neoclassical economists?

A) large-scale production means that some sellers will necessarily be large enough to affect market prices.
B) the distribution of ownership of factors of production is so unequal that the entire system is unfair.
C) some commodities that are consumed socially and are important to society even though they may not be profitable for a capitalist to produce and sell.
D) the production of some commodities (e.g., automobiles) often involves social costs (smog) that are far in excess of the private costs of the production.
E) none of the above.

Question 19

The Social Darwinists believed that

A) competition is to be preferred to monopoly.
B) government intervention into the economy should be minimal.
C) the evolution of capitalism was led by the evolution of two new species, capitalists and workers.
D) the people best adapted to society will be those who survive and prosper.
E) none of the above.

Question 20

The magnitude of which of the following would be the best indicator of a man's social and moral worth as far as the Social Darwinists are concerned?

A) wealth
B) I.Q.
C) kindness
D) creativity
E) knowledge

Question 21

Herbert Spencer believed that government welfare programs

A) were insufficient to cure poverty.
B) retarded evolutionary progress.
C) accelerated evolutionary progress.
D) would be airtight if there were not so many lazy, able-bodied men on welfare.
E) would motivate unmarried women to have illegitimate babies.

Question 22

Businessmen who were proponents of laissez faire philosophy

A) accepted many ideas of neoclassical economics.
B) accepted many ideas of Social Darwinism.
C) generally actively sought government intervention on their own behalf.
D) often equated business success with moral virtue.
E) all of the above.

Question 23

A "new Christian paternalistic ethic" is expressed in the writing of

A) Pope Leo XIII.
B) Andrew Carnegie.
C) Simon Patton.
D) all of the above.
E) a and b.