The Real Chapter 11 Ethics

Front 1

Accelerationists

Back 1

a person, esp. an economist, who advocates or promotes the acceleration principle. They try to pinpoint industries that promise to become strong international competitors and position them to move rapidly into the world markets

Front 2

Adjusters

Back 2

Adjustment assistance to declining industries in return for commitments that they would slim down, modernize, and help the employees relocate and train for new skills and jobs.

Front 3

Bankers

Back 3

Advocate a federally backed industrila development bank that would provide "patient capital"--money that could be sunk into a high-risk venture for 5-10 years longer

Front 4

Central Planners

Back 4

Advocate growth-oriented macroeconomic policies that would come close to comprehensive planning.

Front 5

Collectivistic Ethic of Government

Back 5

The government ethical system that is involved in the antagonistic relationship between business and government. Includes: 1). Colelctivistic Ethics 2). Subordination of individual goals and self-interest to group and group interests 3). max the obligations assumed by individual and discourages self-interest 4). Emphasizes equality of individuals

Front 6

Deregulation

Back 6

Represents a counter force aimed at keeping the economy in balance. It is the political philosophy that prevailed during the period of it origin and growth.

Front 7

Direct Costs

Back 7

Costs that are most visible when we look at the number of new agencies created, aggregate expenditures, and growth patterns of the budgets of federal agencies responsible for regulation

Front 8

Economic Regulation

Back 8

Regulatory bodies that divide along industry lines; they regulate business behavior through controlling and influencing economic or market variable such as prices (max & min) entry to and exit from markets, and types of services offered.

Front 9

Excess Profits

Back 9

One of the reasons for government regulations. This is a profit exceeding the normal profit. Normal profit equals the opportunity cost of labor and capital, while super-normal profit is the amount exceeds the normal return from these input factors in production.

Front 10

Excessive Competition

Back 10

A view that holds if there is a lot of competition, that prices will be set at unprofitably low levels. This would ultimately lead to businesses to close and will lead to the products being too costly because remaining firms will raise prices, which will leave the consumer in a worse position than before.

Front 11

Federalization

Back 11

To subject to the authority of a federal government; put under federal control.
Example: Airport Security following 9/11 attacks

Front 12

Indirect Costs

Back 12

Forms, reports, and questionnaires that business must complete to satisfy the requirements of the regulatory agencies. These costs get passed onto the consumer in the form of higher prices.

Front 13

Individualistic ethic of Business

Back 13

One of the ethic beliefs in the antagonistic relationship between business and government. Business beliefs include: 1) Individualtis ethic 2) Max concession to self Interest
3) Min the load of obligations society imposes on the individual (personal freedom) 4) Emphasized inequalities of individuals

Front 14

Induced Costs

Back 14

Induces effects of regulation include three effects: 1) Innovation may be affected 2) New investments in plant & equipment may be affected 3) Small business may be adversly affected

Front 15

Industrial Policy

Back 15

Any selective government measure that prevents or promotes changes in the structure of an economy

Front 16

Market Failure

Back 16

Failure of the free-enterprise system

Front 17

Natural Monopoly

Back 17

Exists in a market where the economics of scale are so great that the largest firm has the lowest costs and thus is able to drive out its competitors

Front 18

Negative Externalities

Back 18

Known as Spillover Effects result when a manufacture or use of a product gives rise to unplanned or unintended side effects on others (other than the produces or the consumer)

Front 19

Privatization

Back 19

The process of "turning over to" the private sector (business) some function or service that was previously handled by some government body.

Front 20

Regulation

Back 20

The act of governing, directing according to rule, or bringing under the control of law or constituted authority

Front 21

Social Costs

Back 21

Costs absorbed by society rather than incorporated into the cost of making the product. Examples Health Care Costs

Front 22

Social Goals

Back 22

Goals that the government deems to be in the public interest. Some are related to negative externalities in the sense that government is attempting to correct problems that might also be viewed as negative externalities by particular groups. Example: Keep people informed

Front 23

Social regulation

Back 23

Regulations that seek to protect society as a whole. Ushered in the 1960's beginning with the Civil Rights Act of 1964 and then the creation of OSHA in 1970.

Front 24

Targeters

Back 24

Target a select group of sectors or industries (example: high-tech, agriculture, energy, finance, health care equipment) to be turned into engines for growth.