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92 Cards in this Set
- Front
- Back
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What is the timeframe for classical Greece?
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480-320 BC
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Who were the scholars of Classical Greece?
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Plato, Aristotle, Xenophon
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What were the topics of Ancient Greece?
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Justice in Exchange
Commutative Justice Property Rights Function of Money |
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When was the fall of Rome?
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476 AD
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Who were the primary thinkers during the Dark Ages/Feudalism.
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The Scholastics, as Represented by Aquinas.
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What topics did the Scholastics concern themselves with?
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Private Property and morality
Faith + Reason Just Pricing Usury |
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When was the Nation States period?
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1492 - 1700
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What 4 Events shaped classical Greece
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Phonecian Alphabet 9c
Emergence of Greek Colonies 8c Coinage 7c Credit Transactions 7c |
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What was Plato seeking in his works?
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He sought the ideal state. One that would reflect justice.
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Why did Plato think states collapsed?
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Because they had an excess of central value.
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What was Platos primary economic work?
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The Laws
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What specific economic matters did Plato comment on?
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The existence of citys
International Trade |
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What was the name of Platos ideal society
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Magnesia
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What kind of state did Plato want?
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Self Sufficent
Small stable population Luxury Forbidden Adequate quality of life |
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When was Aristotle Active
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384-322 BC
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Compared to Plato, how is Aristotle's ideas viewed?
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More precise and analytical
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What was Aristotles primary debate concerning?
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Use vs Exchange Value
Wanted to ensure a fair exchange value. |
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What is Use value?
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From Aristotle
It is unique to every individual Partially determines exchange val Explains preferences |
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What is exchange value
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From Aristotle
Market value/price |
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What is Commutative justice?
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Reciprocity in exchange
No Gains fro trade Unjust to charge more than worth |
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What was Aristotles view on private property?
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Believed that it had a number of desirable aspects.
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What was Plato's view on private property?
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Believed that it should be held in common
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What were Aristotles 5 reasons why property should be held privately
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1 Maintains peaceful relations
2 Progress builty by incentives 3 Pleasure from ownership 4 Philanthropy is possible 5 In practice it is practical |
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In what ways were Plato and Aristotle alike?
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Both wanted to reach harmony, both were concerned withe extremes.
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What caused the feudal system?
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Need for security.
Established through reciprocal relationship exchanges. |
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What is feudal society?
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Described political arrangements.
Kings, Barons, Serfs, Church |
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What is the manor system?
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Described medieval economic systems.
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What was the status of the church during the Dark Ages?
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Coequal status with Barons
Caretaker of land for Crown Exchanged church services for labor. |
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When did Aquinas right?
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1225 - 1274 AD
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What sort of arguments did Aquinas make?
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Methodological systematic arguments.
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What was Aquinas's view on interest?
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Not acceptable to charge interest to compensate for risk.
Generally forgbidden. But some rare cases. |
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According to Aquinas, what were the 2 sins related to voluntary exchange?
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Usury and Fraud
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What is the problem (theoretically) with isolated exchange?
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Is it okay to exploit ignorance?
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When did Aquinas say it was okay to explot ignorance?
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If you were dealing with a market.
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What informed the Church's early rules on private property?
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12th century collection of Cannon law.
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What was Aquinas's view of Private property?
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It is a reasonable extension of natural law. Just like clothing. God gave us reason to sue. And reason leads to private property.
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What was Aquinas' law 4 classifiation system.
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Eternal Law - only god
Natural Law- From reason Divine Law - Only revealed Human Law - Rules, regulations |
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What issues concerning fraud did Aquinas write about?
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Just Price.
Product Defects. Resale. |
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What was Aquinas's view on Product defects?
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Problem comes in advertised quality or quantity.
Generally unjust. But buyer has to conduct due dilligence. |
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Why was Aquinas worried about greed?
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That it is limitless.
Can lead to unnatural exchange. Influenced by St. Augustine. |
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What kind of sale did Aquinas view as sinful?
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Unnatural exchange where we sell goods without modifying them.
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When is taking compensation ok according to Aquinas?
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For a reasonable profit.
If used to provide for family If used to provide for charity Okay if Market Price rises |
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What were scholastics views of usury informed by?
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Greeks also objected.
Council of Nicea Pope Leo Canon law Charlemange extends to all |
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What did Aquinas and Aristotle share?
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To receive usury is unjust.
Analytical framweork. |
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What was Aquinas's main objection to Usury?
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It is the sale of time.
But god owns time. Consumption of money destroys it. |
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Were Merchs intertested in justice?
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No, it was a window dressing for self-interest.
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What caused the breakdown of the Feudal order?
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Emerging nation states
The plague 1352 Trinkets/luxury good markets |
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What year was the plague
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1352
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What did the rise of nation states bring about?
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Colonization
Age of exploration Competition among states. |
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What were the objective of mercantilist states?
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Obtain Gold and Siolver.
Maintain a positive BoT Price Specie Flow Model maximize power |
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What is the price specie flow model?
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gold > exports >MS > r > price of exports
Later criticized by David Hume |
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How did mercantilists differ from greek and scholastic writers?
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Primarily businessmen, not philosophers
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What sort of population did mercantilists want?
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A large working age population
Necessary to support manufact Increased wages > more imports |
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What is the substitution effect with regards to leisure?
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As wages rise, the opportunity cost of leisure increases.
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What is rent seeking?
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Government supplies firm privldgs
Firms demand them Sold in a political marketplace Trade barriers sold by govt |
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What were the effects of the glorious revolution?
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William trades parliamentary power for support
Makes rent seeking harder Trade protection becomes more expensive Mercantilism declines |
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What is the velocity of money equation?
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v = (P*y) / m
P*Y = nominal income m = total money supply v = velocity of money |
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Who developed the first quantity theory of money?
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John Locke in 1692
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Was John Locke a mercantilist?
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He was a transition figure.
still supported lrg trade surpluses |
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What did Locke contribute to the idea of property rights?
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Labor Theory of Property 1690
Earth is common to all men Mix your labor with land to own Property arises from state o natur |
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How were Aquinas and Locke alike?
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The earth is common to all men.
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Who was Sir William Petty?
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Introduced one of the first economic methodologies.
seperate morals from science Concerned w/ means, not ends |
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Who was Richard Cantillion?
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Paris banker murdered by butler
Wrote on Cantillion Effects link money supply and price lvl Short Run vs Long Run Finds Relative price changes |
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Who were the Physiocrats led by?
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Quesnay
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What writers provided the context for the physiocrats?
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John Locke
William Petty Richard Cantillion |
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What was Quesnays job?
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Physician to French Monarchy
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What was Quesnays primary work?
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Tableux Economique
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How did Quesnay view the economy?
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As interactions between 3 class
1) Farmers 2) Landowners 3) Artisans/Small Mfg |
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What was the context for Quesnays writing?
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Respond to French Mercantilism
High level of French taxation Taxes borne by workers Eclipsed by the British |
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Why was the mid 18th century a British Century?
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1) Industrial Revolution
2) Scottish Enlightenment |
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What were the religious views of Adam Smith?
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Likely a Deist.
Designer sets in motion natural laws, but steps back. Human reason controls after. |
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When did Britains economy skyrocket?
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1800 with the industrial revolution
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Why was the industrial revolution important?
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Better off than u were 300 yrs ago
Revolution in textiles Growth takeoff Life expectancy rises |
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How did the industrial revolution expand?
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First to other British colonies. Then to the rest of the western world.
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What was Smiths COntribution to the enlightenment?
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Replaced divine law faith with human arrangements.
Deemphasized domatic explanations of morality. |
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What was the general theory of Moral Sentiments?
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How we inform moral judgments, how we decide what is good or evil.
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What was the general theory of Moral Sentiments?
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How we inform moral judgments, how we decide what is good or evil.
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What did Smith believe motiaves people?
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Self Interest
We want to connect with people We have an aquistive ethic |
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What is Smiths central question?
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We have an emerging aquistive ethic, is it corrosive of our morals? Are they compatible?
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What is Smiths central question?
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We have an emerging aquistive ethic, is it corrosive of our morals? Are they compatible?
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How does smith try to find the connecting mechanisms of nature?
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There is a natural order to the universe.
Wants to introduce order 2 chaos Impose philosophical framework |
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Why do we parade wealth and conceal poverty?
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Wealth signals happiness
We conect with happy people We want connections |
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What is Hobbes view of the aquistive ethic and morals?q
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They are incompatible
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What does Smith believes restrains people from barbarity?
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Competition
Empathy External law Judgement of others |
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What is Smiths Impartial Spectator?
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Our conscience
We pass judment on own conduct If it fails, government intrudes |
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Why might the impartial spectator fail?
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Passions overwhelm the spectator. Short Term>long
Social distance = we care less |
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What were Smiths virtues:
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Love, courage, temperance, prudence, justice
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What were Aquinas's virtues
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Courage, temperance, justice, prudence
Faith, Hope Love |
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What virtues did Smith and Aquinas share?
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Courage, temperance, justice, prudence
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What was Smiths most important virtue?
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Justice
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Why was Justice Smiths most important virtue?
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Necessary for social constructs
Interpersonal, intergroup Book deals w/ interpersonal |
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According to Smith, what has caused the greatest increase in production?
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Division of labor
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