Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

COMM 216 > Chapter 2: Ethics and Capitalism > Flashcards

Chapter 2: Ethics and Capitalism Flashcards

1
Q

What are the eight fundamentals discussed in the chapter regarding the Canadian economic system?

A

The right of private property.
Equality of opportunity.
Competition.
Individualism and economic freedom.
Profits.
The work ethic.
Consumer sovereignty.
The role of government.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the assumption about the Canadian economic system, and what role do business enterprises play in it?

A

The assumption is that the Canadian economic system is largely composed of business enterprises operating in a market system.

Business enterprises provide the majority of goods and services wanted by Canadians.

Most Canadians accept that an economic responsibility of business is to make a profit in providing these goods and services.

This private system is believed to be less cumbersome, less costly to run than a centralized, government-operated system, and more responsive to society’s needs because it allows individuals and business corporations to be more innovative.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the fundamental right in the business system related to property ownership?

A

The fundamental right is the right to ownership private property by individuals and corporations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does the right to private property entail?

A

It grants individuals the legal right to own and use economic goods, such as land and buildings, without state ownership.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are some rationales for the right to private property?

A

Some rationales include better care of property, a sense of security, satisfaction, and respect for the property of others.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is one ethical implication of the accumulation of capital wealth?

A

An ethical implication is the uneven distribution of wealth among members of society.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How is a more equitable distribution of wealth often pursued?

A

A more equitable distribution is typically pursued through government actions or abridgments to the right of private property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is eminent domain, and how does it relate to property ownership?

A

Eminent domain is a government’s power to expropriate property after payment of a fair price. It relates to the government’s control over property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How is wealth redistribution achieved through taxation?

A

Wealth redistribution is achieved through taxation, although businesses still have certain advantages, such as

  • Consolidating financial statements,
  • Averaging taxable income,
  • Depreciating fixed assets,
  • Receiving tax concessions.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What types of property, in addition to physical property, are important in the modern economy?

A

In addition to physical property, intellectual property is increasingly important.

It encompasses

  • Patents
  • Copyrights
  • Trademarks
  • Industrial designs
  • Integrated circuit topographies
  • Plant breeders
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the fundamental concept of individualism, and what does it assume about the individual?

A

Individualism is the view that the individual, rather than society or a collective, is the paramount decision maker in society.

It assumes that the individual is inherently decent and rational, and individuals should have the privilege of determining their own course of action, encouraging individual initiative and self-interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the connection between individualism and the business system in Canada?

A

Individualism is linked to freedom, providing a connection between the business system in Canada and a democratic form of government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are some general freedoms associated with individualism?

A

Some general freedoms associated with individualism include:

  • The capability to have and control property.
  • Freedom of association
  • Freedom of information
  • Freedom of movement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are examples of economic freedom within a business system?

A

Examples of economic freedom within a business system include:

  • The freedom of individuals to enter business,
  • Locate anywhere,
  • Enter contracts,
  • Choose among competing goods and services,
  • Choose an occupation,
    access consumer and output markets,
  • Develop their own economic ends by choosing and utilizing resources as they see fit.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How does economic freedom encourage entrepreneurial talent and innovation?

A

Economic freedom encourages entrepreneurial talent and innovation by allowing individuals to do things that naturally contribute to the production of the goods and services required by society.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Factors for Economic Freedom

A

Property rights: Rule of law protecting property rights.

Taxation: All taxes considered harmful to economic activity.

Government intervention: Economic freedom improves with less government.

Regulation: Regulations should be straightforward, efficient, and minimal.
International exchange: No restrictions on the movement of goods, services, or money between nations.

Foreign investment: Few, if any, limits on foreign investment.

Money and inflation: Government maintains a tight monetary policy to avoid currency supply exceeding demand.

Wage and price controls: A free economy allows corporations to set prices and wages.

Corruption: Corruption, like a black market, should not exist in the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the alternative perspective to individualism in society, and why is it considered important?

A

The alternative perspective is communitarianism, which emphasizes the importance of individuals seeking to join and identify with some type of community organization.

It is considered important because status is achieved by working with others rather than struggling alone.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Can you provide examples of community organizations that promote communitarianism?

A

Examples of community organizations that promote communitarianism include:

  • Unions
  • Cooperatives
  • Developments in industrial democracy
  • Social enterprises
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is “Equality of opportunity?

A

Equality of opportunity
The assumption that all individuals or groups have an even chance at responding to some condition in society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Why is achieving equality of opportunity challenging in a capitalist system?

A

Achieving equality of opportunity in a capitalist system is challenging because it often leads to economic or income inequality, which can be blamed on businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are some examples of economic or income inequality mentioned in the text?

A

Examples of economic or income inequality include

  • Stagnant wages while profits increase
  • The gap between the poor and the rich (both within organizations or countries and among different countries)
  • Male versus female income disparity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What has replaced the emphasis on equality of opportunity in some contexts?

A

In some contexts, the emphasis on equality of opportunity has been replaced by a desire for equality of results, such as adequate income, quality healthcare, good education, and retirement security.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

How has the concept of equality been redefined in this shift?

A

Equality has been redefined to be an equality of results, with all persons in society having nearly equal incomes, status, and power.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What has been the approach to achieving this new equality of results?

A

The new equality of results has been sought to be achieved through government involvement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What conflict arises as a result of this shift towards equality of results?

A

The conflict arises between the motivational incentive provided by a competitive system and a system advocating equal reward to all, regardless of the extent of effort or contribution.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

How is competition defined in a market system?

A

Competition in a market system is the condition in which many rival sellers seek to provide goods and services to many buyers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Why is competition considered natural and desirable?

A

Competition is considered natural and desirable because it ensures that corporations provide the goods and services desired by society.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

How does competition prevent the concentration of economic power?

A

A multitude of sellers ensures competition and prevents the concentration of economic power because no single corporation or seller can influence the market significantly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What are some advantages of competition in a market system?

A

Some advantages of competition include:

providing goods and services at the lowest costs,
reducing waste and inefficiency,
keeping profits to a minimum,
widening the choice of goods and services available to consumers,
and regulating prices.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is the role of competition in the orderly operation of the market, as mentioned in the text?

A

Competition is referred to as the “invisible hand” responsible for the orderly operation of the market, where society rewards the most competitive firms, and only the fittest survive.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What type of competition is described as seldom existing today?

A

The text describes perfect competition as seldom existing today.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is an oligopoly, and where does it exist?

A

An oligopoly is a situation where a few sellers in an industry behave similarly, and it exists in many industries.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What are some ways in which government regulates or influences prices?

A

Government regulates or influences prices through direct control over:

wages and profits (e.g., during wartime),

taxation,

direct regulation,

provincial trade barriers, and tariffs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

How are profits defined in the context of business?

A

Profits are defined as the excess of revenues over expenses in the context of business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

How does competition relate to profits in the business world?

A

Corporations compete for profits, and competition ensures that if excessive profits are made, others will be attracted to the industry.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Besides regulating efficiency, what other functions do profits serve?

A

Profits not only regulate efficiency but also serve as a measure of effectiveness. They can be retained in the business as a source of funds, provide an incentive to develop new products and technology, and serve as a reward for risk-taking.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

How do many people in society often perceive profits?

A

Many people in society view profits with disdain, and some even consider them immoral.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What aspect of earning a profit do some find inappropriate?

A

Some consider attempting to maximize profits through reducing competition to be inappropriate

39
Q

How has the role of profits changed in some industries as corporations have become larger and fewer in number?

A

The role of profits has changed in some industries as corporations have become larger and fewer in number, and as more prices are government- or self-regulated.

40
Q

What factors have contributed to profits not acting as a “regulator” as envisioned in classical theory?

A

Factors contributing to profits not acting as a “regulator” include the introduction of taxation, especially income taxation, and the rates of inflation, as well as barriers to entry in many industries and the need for increasing size to achieve efficiency.

41
Q

How is competition not only reflected in the number of corporations but also impacted by other factors?

A

Competition is not only reflected by the number of corporations operating in an industry but is also impacted by the services offered, advertising, brand loyalty, and image or reputation.

42
Q

What is “Work Ethic”?

A

Work ethic
A code of values, or a body of moral principles, claiming that work is desirable, a natural activity, and is good in and of itself.

43
Q

How have government programs and societal expectations influenced individuals’ attitudes toward work?

A

Government programs that support the less fortunate and reduced effects of unemployment through Employment Insurance payments have led to changes in individuals’ attitudes toward work.

44
Q

What impact can these government programs have on labor markets?

A

These government programs can sometimes distort labor markets, leading to actual unemployment.

45
Q

What are some of the expectations individuals have regarding support and benefits, as mentioned in the text?

A

Individuals now expect more support from governments and business corporations in terms of working conditions, fringe benefits, and salaries

46
Q

How has the shift towards government handouts and a more paternal attitude by employers affected the work ethic?

A

The shift towards government handouts and a more paternal attitude by employers has led to a perception that there is less need to work hard or, for some, to work at all.

47
Q

How did the traditional work ethic differ from the modern consumption ethic?

A

The traditional work ethic encouraged thrift and saving, whereas the modern consumption ethic is driven by the desire to acquire material possessions

48
Q

What is consumer sovereignty in the context of an economy?

A

Consumer sovereignty is the assumption in an economy that consumers have and exercise power over producers through their purchasing decisions.

49
Q

What is considered the end purpose of production according to the concept of consumer sovereignty?

A

According to consumer sovereignty, consumption is considered the end purpose of production

50
Q

What determines the success of a business in the context of consumer sovereignty?

A

The success of a business is determined by consumers’ evaluation and acceptance or rejection of its products and services

51
Q

How does the power of consumers relate to the competitiveness of the market?

A

Consumer sovereignty is a fundamental part of any competitive system, and generally, the more competitive the market, the stronger the power of the consumer

52
Q

What challenges do consumers often face in exercising their sovereignty?

A

Consumers often face challenges such as being unaware of all available alternatives, lacking the capability to understand technical complexities, and having limited or no choice with some goods and services.

53
Q

How do giant corporations influence consumers’ tastes and preferences, as mentioned in the text?

A

Giant corporations are said to mold consumers’ tastes and preferences through persuasive advertising.

54
Q

Why do producers sometimes have the power to ignore certain consumer wishes?

A

Producers may have the power to ignore some consumer wishes, which can be necessary for mass production.

55
Q

What factors have contributed to the proliferation of products and brands with little difference?

A

Trivial product differentiation and artificial product obsolescence have encouraged the proliferation of products and brands with little difference

56
Q

How have Canadian governments influenced consumer matters through legislation?

A

Canadian governments have passed legislation related to consumer matters, imposing regulations, standards, and approvals before product introduction

57
Q

What is the typical focus of government influence or regulation in the context of “public interest”?

A

Government influence or regulation in the “public interest” is often seen as more aligned with the “producer interest.”

58
Q

How do tariffs and quotas on imported goods affect consumers?

A

Tariffs and quotas on imported goods create contrived scarcities, leading to increased prices paid by consumers.

59
Q

According to the text, do consumers have significant influence on the market compared to other entities?

A

The text suggests that consumers may have less influence on the market compared to organizations of large corporations, government agencies, organized labor, or minority producer groups.

60
Q

How is the government’s role described in the context of a laissez-faire approach?

A

The government’s role is described as being kept to a minimum, often expressed as a laissez-faire approach, meaning “leave us alone.”

61
Q

What are some of the essential functions that government is expected to provide, despite advocating minimum involvement?

A

Despite advocating minimum government involvement, government is expected to provide functions such as
national security,
maintaining internal law and order,
and establishing a system of currency and measures.

62
Q

What is one of the roles of government in relation to individuals and contracts?

A

Government provides mechanisms for

individuals to associate with others for a common, lawful purpose by evolving a body of law relating to contracts between individuals.

This body of law establishes a basis for individual behavior and expectations regarding contractual arrangements.

63
Q

How is government intervention in the business system viewed when it extends beyond specific activities like national security and currency?

A

Government intervention in the business system beyond activities like national security and currency is often considered to lessen efficiency as it restricts the movement of resources and interferes with market pricing.

64
Q

How has the role of government in the business system evolved compared to its intended modest role?

A

Instead of the modest intended role, the government has become an influential stakeholder in the business system.

65
Q

How does government involvement in the economy in Canada compare to that in the United States?

A

Government involvement in the economy has historically been greater in Canada than in the United States.

66
Q

Can you provide an example of a major intervention in the economy mentioned in the text?

A

The National Policy of the 1880s, involving the imposition of tariffs to protect domestic manufacturers, is cited as a major intervention in the Canadian economy

67
Q

In what ways is the government extensively involved in the economy, as mentioned in the text?

A

Government is extensively involved in the economy through

subsidies,
taxation,
tariffs,
regulations and legislation,
loans and grants programs,
and ownership.

68
Q

What dual role does the government play in the business system, as described in the text?

A

The government is not only a monitor of business activity but also an active participant in the system.

69
Q

What are some ways in which governments restrict business activities, as mentioned in the text?

A

Governments restrict:

capital movements and natural resource sales,

impose product standards, and,

in some cases, prevent businesses from shutting down plants when they want.

70
Q

What aspects of business do legislation and government regulation often govern?

A

Legislation governs how employees are treated and regulates the types of contracts that can be made with customers.

71
Q

What is the aim of competition legislation, as mentioned in the text?

A

Competition legislation aims to make some types of trade practices illegal and attempts to prevent monopolization.

72
Q

What is consumer capitalism, and in which countries is it practiced?

A

Consumer capitalism, also known as liberal market capitalism, is practiced in countries like the United States, Britain, Canada, and Australia.

It involves limited government involvement in the economy, open borders, and a profit-oriented mentality.

73
Q

What are some potential problems associated with consumer capitalism?

A

Potential problems with consumer capitalism include income inequality, a low savings rate, and weak central governments.

74
Q

What is producer capitalism, and which countries practice it?

A

Producer capitalism emphasizes production, employment, and statist policies, and it is practiced in countries like Germany. It’s often referred to as a social market economy with regulated capitalism and generous social welfare.

75
Q

What are some potential issues with producer capitalism?

A

Potential problems with producer capitalism include fraying social safety nets, slowed innovation, and consumer dissatisfaction.

76
Q

What is family capitalism, and where is it commonly found?

A

Family capitalism, also known as crony and Confucian capitalism, is found in eastern Asian countries like Malaysia, Thailand, and Indonesia.

It involves extended clans dominating business activities and controlling capital flows.

77
Q

How does family capitalism differ from Western beliefs?

A

Family capitalism is based on emotional attachment, social balance, and harmony, differing from Western beliefs in objectivity, equal treatment, and a “level playing field.”

78
Q

What is frontier capitalism, and which countries are examples of it?

A

Frontier capitalism is in its beginning stages and can be seen in countries like Russia and China.

It involves the introduction of business fundamentals and the development of commercial law and regulation.

79
Q

What is state capitalism, and how does it differ from other forms of capitalism?

A

State capitalism involves a greater role of government directly in the business system through ownership of corporations.

It differs from other forms in that governments manipulate market outcomes for political and social purposes.

80
Q

What concerns do many economists have about state capitalism?

A

Many economists fear that government involvement in business for political or economic purposes may not result in the most efficient use of resources.

81
Q

What is greed, and how does it relate to self-interest?

A

Greed is an excessive and selfish form of self-interest where individuals desire more of something than what is needed or fair.

82
Q

What are economic cycles, and why are they a feature of capitalism?

A

Economic cycles are fluctuations between prosperous times and recessions or depressions that occur in capitalist systems because capitalism is based on a market system

83
Q

What were some of the factors attributed to the 2008 financial crisis?

A

Factors attributed to the 2008 financial crisis include the lack of government regulation and oversight and business practices such as a focus on share value and incentive-based executive compensation.

84
Q

How does capitalism handle business failures, and what role do bankruptcy laws play?

A

Capitalism disposes of weak corporations through business failures and shifts resources to new or stronger ones. Bankruptcy laws play a crucial role in transferring resources efficiently from less-productive to more-productive uses.

85
Q

What are some arguments made by critics of capitalism regarding income and wealth inequality?

A

Critics of capitalism claim that a system based on a market system leads to income and wealth inequalities.

86
Q

How do supporters of capitalism justify income and wealth inequalities, and why do they consider them necessary?

A

Supporters of capitalism argue that inequalities are inevitable and necessary in a dynamic economy to provide incentives and prevent the regimentation of equality.

87
Q

When does a problem arise concerning income and wealth inequality, according to the text?

A

A problem arises when particular groups in society are discriminated against economically to an extent that cannot be tolerated.

88
Q

How do advocates of capitalism view its impact on society and human well-being?

A

Advocates of capitalism argue that it produces wealth, promotes prosperity, and provides greater human well-being than any other economic system. It allows creative and productive forces to create value, resulting in a better quality of life.

89
Q

What is one key aspect of planning for success in a capitalist system, as mentioned in the text?

A

Planning for success in a capitalist system involves empathy towards others or stakeholders. Cooperation is encouraged alongside competition

90
Q

How does capitalism respect freedoms, according to the text?

A

Capitalism respects freedoms, including the right of individuals to set their own objectives and pursue happiness as they perceive it.

It safeguards the freedom of an independent mind and the sanctity of the individual.

91
Q

What role does the Internet and social media play in holding businesses accountable, as mentioned in the text?

A

The Internet and social media play a role in holding businesses accountable as they enable consumers to demand products consistent with their moral values and insist on respect for the environment.

92
Q

What assumption exists at the level of the corporation regarding moral behavior, as stated in the text?

A

At the level of the corporation, there is an assumption that moral individuals operate the business system and that they are in the majority.

A strong system of moral behavior and integrity is necessary for capitalism to operate effectively.

93
Q
A

COMM 216 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions