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22 Cards in this Set
- Front
- Back
Describe homo economicus and human behavior (3 points)
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Humans are self interested, rational, and learn from their mistakes and change their behavior if a choice fails to improve their well-being
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Adam Smith beliefs
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All human behavior was actuated based on 6 motives: self-love, sympathy, desire to be free, sense of propriety (ownership), habit of labor and a tendency to truck
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Adam Smith Book
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Wealth of Nations (1776)
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Adam Smith contribution to economics
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invisible hand and supply & demand
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David Ricardo book
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The Principles of Political Economy and Taxation (1812)
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David Ricardo contributions to ecnomics
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diminishing returns and comparative advantage
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comparative advantage (David Ricardo)
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a country should produce a certain good that they are good at and trade instead of producing everything
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Thomas Malthus book
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Essay on the Principle of Population (1798)
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Thomas Malthus contribution to economics
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theory on population
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Theory on Population (Thomas Malthus)
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unless you institute some type of controls, poverty and famine will become epidemic and wipeout the human species
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Things consumers need
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competition, knowledge of the market
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The market place responds to what?
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demand
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Desribe what is wrong with the characterization of man in homo economicus.
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These are all assumption that sound good but have their limitations; some actions counter the descriptors
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Define microeconomic theory
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Details of the "big picture" in the economy, consists of austrian and neoclassical schools of thought, focuses on economic actors with a specific interest in the behavior of individual economic actors.
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Explain 2 practical shortcomings of microeconomical theory (Vasquez)
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1. Exclusion of segments of society
2. Injurious hazards 3. Absence of Competitive markets |
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Explain 2 theoretical shortcomings of microeconomical theory (Hosmer)
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1. Minority is ignored
2. People become means to an end |
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Explain 2 combined shortcomings of microeconomical theory (Melendez)
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1. The overreliance/ use of the cost benefit analysis
2. The law of supply and demand |
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List 4 benefits of business ethics
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1. Employee Commitment
2. Investor Loyalty 3. Customer Satisfaction 4. Profits |
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Who is Amy Domini?
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stockbroker is 1980's, gave investors a choice to see if there was value in investing in socially responsible companies
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Explain the Domini 400 exclusionary screen
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companies in industries where their product or services do not contribute to welfare or goodwill of people (do social harm) ex. cigarettes, porn, alcohol
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Explain the Domini 400 qualitative screen
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tracks companies records with the environment, demonstration of customer and employee satisfaction and involvement in philanthropy
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Explain 6 reasons why business should pursue sustainable development.
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1. self interest
2. prudent long term strategy 3. unmet market potential among world's developing countries 4. cost savings 5. competitive advantage 6. risk management strategy |