BCOR 1015 Final Exam Questions and Answers Verified
What are Hayeks views on planning and decision making?
he believes in decentralized knowledge
HAYEK: what is decentralized knowledge?
spreading knowledge amongst people
is Hayek against centralization?
yes
HAYEK: how does the price system coordinate resources?
price signals are used to make decisions and send information to other groups because
prices are lower or higher
what are price signals?
signals wrapped up in incentives; prices can constantly adapt and update in response to
new information
HAYEK: what is arbitrage?
benefitting from peoples ignorance; buying something cheap at a flea market then re-
selling at a higher price
Does Hayek argue that arbitrage is moral or immoral?
arbitrage is moral if its helping allocate resources
What article did Cohen write?
Why not socialism
COHEN: what is the bourgeois equality of opportunity
removal of socially constructed status restrictions
COHEN: what is the leftest liberal equality of opportunity
removal of the disadvantages of circumstances, even if not socially constructed (but
leaves differences in opportunity related to "naive or inborn traits")
COHEN:what is the socialist equality of opportunity
corrects for all unchosen disadvantages, that is, for which the agent cannot be held
responsible, whether they be disadvantages
What were the three inequalities Cohen thought existed?
1. Laws (formal) 2. Unchosen Social Disadvantages (informal) 3. Raw Talent
Because of these 3 things, he wanted to diminish the equality of opportunity
COHEN: what is the relationship between equality and community?
According to cohen reducing inequality involves both equalizing and also a redistribution
policy
Is Cohen a socialist?
yes
FRIEDMAN: is income equality or inequality fair?
he thinks inequality should be allowed due to practical and moral reasons
COHEN: what did he believe in, in regards to redistribution?
Believed in redistribution through a flat tax rate - equality
People w/ higher incomes get taxed more than poor people and that is UNFAIR
COHEN: if people are willing or prefer to work harder jobs, they should or should
not be paid more?
SHOULD
How does Friedman conceptualize capitalism?
What are Hayeks views on planning and decision making?
he believes in decentralized knowledge
HAYEK: what is decentralized knowledge?
spreading knowledge amongst people
is Hayek against centralization?
yes
HAYEK: how does the price system coordinate resources?
price signals are used to make decisions and send information to other groups because
prices are lower or higher
what are price signals?
signals wrapped up in incentives; prices can constantly adapt and update in response to
new information
HAYEK: what is arbitrage?
benefitting from peoples ignorance; buying something cheap at a flea market then re-
selling at a higher price
Does Hayek argue that arbitrage is moral or immoral?
arbitrage is moral if its helping allocate resources
What article did Cohen write?
Why not socialism
COHEN: what is the bourgeois equality of opportunity
removal of socially constructed status restrictions
COHEN: what is the leftest liberal equality of opportunity
removal of the disadvantages of circumstances, even if not socially constructed (but
leaves differences in opportunity related to "naive or inborn traits")
COHEN:what is the socialist equality of opportunity
corrects for all unchosen disadvantages, that is, for which the agent cannot be held
responsible, whether they be disadvantages
What were the three inequalities Cohen thought existed?
1. Laws (formal) 2. Unchosen Social Disadvantages (informal) 3. Raw Talent
Because of these 3 things, he wanted to diminish the equality of opportunity
COHEN: what is the relationship between equality and community?
According to cohen reducing inequality involves both equalizing and also a redistribution
policy
Is Cohen a socialist?
yes
FRIEDMAN: is income equality or inequality fair?
he thinks inequality should be allowed due to practical and moral reasons
COHEN: what did he believe in, in regards to redistribution?
Believed in redistribution through a flat tax rate - equality
People w/ higher incomes get taxed more than poor people and that is UNFAIR
COHEN: if people are willing or prefer to work harder jobs, they should or should
not be paid more?
SHOULD
How does Friedman conceptualize capitalism?
