Chapter 11

Question 1

What is a firm

Answer 1

Firm (whats a company):
Organization (Profit Motive) (internal relationship vs external) (rational goal is to make money)
Produces Goods (how to make money)
Context: Industrial Capitalist (affect how it works)
Motor of our Economy (basis of our society)

Question 2

What are the characteristics of the Modern world

Answer 2

Importance of Separating the Spheres
Maintaining this Separation
Satisfying Individual Needs
Moving Away from Communal Ties
Self-Interest vs. Collective Interest

Question 3

What is the alternative option to the Modern World (pre capitalist)

Answer 3

Polanyi
Economic interaction in precapitalist

Autarky
Self sufficiency  before capitalism
-dont need to trade; grow crops; dont need to buy and sell thing

Reciprocity
Ex: west coast native people; ceremony
Potlach Gift economy
Gift vs. Gift

3 obligations in this society
1- gift
2-receive
3- give back

You judge on how much you gave  how generous you gave
You give back eventually

Redistribution
Reminds of the welfare state
Ex: collect on your pay and redistribute in the society (deduction)
community interest

Simple transaction need more things institution
Ex: apple and itues  no obligations, really simple,

Question 4

What make a nation wealthy according to Adam smith

Answer 4

Specialization

Question 5

Sam Smith and self- interest

Answer 5

Our Needs & Trade

Improve our Lot
Need to Trade

NEED TO Division of Labour

Self-Interested Exchange
Wealth (specialized workforce)

Capitalism is a good idea

Humans have a desire to improve our situation; Ex: bigger car, nicer clothers
Also this basic innate need of trade ex:pencil state

Question 6

What is Durkheim’s view on Self-Interested Exchange

Answer 6

Population Density
Specialization Prevents Self- Destruction (in order to not self destruct)
Professional Milieu is our Natural Milieu (care more about our job and less about our family)
Specialization + Self-Interest
= Organic Solidarity

Question 7

What is Organic Solidarity

Answer 7

Specialization + Self-Interest
= Organic Solidarity

ex:
Organic Solidarity
we are independant
We buy what we want

Ex: used to buy coffee at starbuck; 
One day realize it is too expensive
NO OBLIGATIONS 
Dependant on stuff not on people
Today no longer self sufficient
INDIVIDUAL INDEPENDANCE