Business Ethics Chapter 3

Front 1

when one country can produce a good more cheaply than another.

Back 1

absolute advantage

Front 2

according to John Maynard Keynes, the sum of the demand of three sectors of the economy: households, businesses, and government.

Back 2

aggregate demand

Front 3

the effect, according to Marx, of capitalist systems which do not allow the working class to develop their productive potential or satisfy their real human needs.

Back 3

alienation

Front 4

according to Marx, the class that owns the means of production.

Back 4

bourgeoisie

Front 5

a system where a single authority makes the decisions about what is produced, and by whom, and to whom it is distributed.

Back 5

command economy

Front 6

the belief that government should be authoritative, defining the needs of the community and seeing that those needs are met.

Back 6

communitarianism

Front 7

a grant that indicates that a particular expression of an idea is the private property of an individual or company.

Back 7

copyright

Front 8

the system a society uses to provide the goods and services it needs to survive and flourish.

Back 8

economic system

Front 9

the materials and social controls that society uses to produce its economic goods.

Back 9

economic substructure

Front 10

the materials (land, labor, natural resources, machinery, energy, technology) used in production.

Back 10

forces of production

Front 11

a system in which individual firms, privately owned, make their own decisions about what they will produce and how they will produce it.

Back 11

free market system

Front 12

the process by which the economic and social systems of nations are connected together so that goods, services, capital, and knowledge move freely between nations.

Back 12

globalization

Front 13

the Marxist view that history is determined by changes in the economic methods by which humanity produces the materials on which it must live.

Back 13

historical materialism

Front 14

a system of normative beliefs shared by a group, expressing answers to questions about human nature, the purpose of society, and the values of the group.

Back 14

ideology

Front 15

the combined effects of increased concentration, cyclic crises, rising unemployment, and declining relative compensation.

Back 15

immiseration

Front 16

the belief that government has a limited role, existing primarily to protect the property of the individual and keep the marketplace open.

Back 16

individualism

Front 17

the property that consists of an abstract, nonphysical object; such property, unlike physical property, is nonexclusive.

Back 17

intellectual property

Front 18

according to Adam Smith, market competition drives self-interested individuals to act in ways that serve society.

Back 18

invisible hand

Front 19

according to John Maynard Keynes, free markets alone are not necessarily the most efficient means for coordinating the use of societies resources.

Back 19

Keynsian economics

Front 20

according to Locke, the moral principle that since all men are free and equal, no one ought to harm another in his life, health, liberty, or possessions.

Back 20

law of nature

Front 21

the right to life, liberty, and property.

Back 21

Lockean rights

Front 22

an economic system based primarily on private individuals making decisions about what they will produce and who will get it.

Back 22

markets

Front 23

the buildings, machinery, land, and raw materials used in the production of goods and services.

Back 23

means of production

Front 24

an economy with both free market and central planning attributes.

Back 24

mixed economy

Front 25

the rights that nature teaches each man that he has according to the law of nature.

Back 25

natural rights

Front 26

the assumption that whatever happens naturally is always for the best.

Back 26

naturalistic fallacy

Front 27

new inventions invented by a person that are designed as private property.

Back 27

patent

Front 28

economists who have sought to challenge and modify Keynesian economics.

Back 28

post-Keynesian school

Front 29

a system that maintains a system of property laws to assign private individuals the right to make decisions about what they own.

Back 29

private property

Back 30

system

Front 31

according to Marx, the alienated working class.

Back 31

proletariat

Front 32

the social controls used in producing goods (i.e., the social controls by which society organizes and controls its workers).

Back 32

relations of production

Front 33

all available resources are used and demand always expands to absorb the supply of commodities made from them.

Back 33

Says law

Front 34

belief that economic competition produces human progress.

Back 34

social Darwinism

Front 35

a society’s government and its popular ideologies.

Back 35

social superstructure

Front 36

according to Locke, the state where each man is the political equal of all others, perfectly free of any constraints except the law of nature.

Back 36

state of nature

Front 37

the difference between the value of labor and the wage paid for it.

Back 37

surplus value

Front 38

Charles Darwin’s term for the process of natural selection.

Back 38

survival of the fittest

Front 39

societies that rely on traditional communal roles and customs to carry out basic economic tasks.

Back 39

tradition based societies