Exam 4

Question 1

Explain Adam Smith’s capitalist theory about how a market economy should work.

Answer 1

Capitalism calls for a market (interaction of self interested buyers and sellers). Free market has competition between self interested sellers and this competition makes the best product at the lowest price. This market, the “invisible hand”, answers the great economic question: how much of what is produced; what’s the cost; who gets what. Government in his view should take responsibility for education, defense, infostructure, crime and punishment.

Question 2

What are the four guidelines which Dei Verbum (Vatican II) offers for interpreting scripture passages?

Answer 2

1) Those who search out the intention of the sacred writers must, among other things, have regard for “literary forms.
2) The interpreter must take in the situation of his own time and culture when investigating a sacred writers passages.
3) Pay attention to the customary and characteristic styles of perceiving, speaking, and narrating which prevailed at the time of the sacred writer
4) Pay attention to the customs men normally followed at that period in their everyday dealings with one another.