Final Flashcards
(30 cards)
Subjective Value
Worth or importance of a good based off a person’s preferences/values
Voluntary Exchange
Parties trading freely and both ending better off in the end
Trade and Wealth Creation
By specializing in a good, people can trade and get what they need creating wealth from each other
Specialization
Focusing on a specific skill to become efficient and increase quality/productivity
Price system
Prices are determined through supply and demand
Invisible Hand
Adam Smiths theory of individual acting in their self-interest, unintentionally effecting the economy
Monopoly
A single company controlling the market reducing choice
Competition in encouraging discovery and innovation
Encourages businesses to improve and differentiate themselves to stay in competitive leading to more discoveries and innovations
Rent Seeking
Trying to influence the market by manipulating the system
Competition as a selection process
Competition makes companies improves quality to stay on top of the selection process
Competition’s role in controlling power
Leading a market that you control prices and decisions on goods
Metacognition
Aristotle’s theory of thinking about thinking
Ethics
Rules and principles that guide behaviors
Morals
Personal beliefs about right and wrong based off experiences and upbringing
Laws
Rules created by government to maintain order
Business Integrity
Being honest and ethical in all business decisions
Ethical dilemma
Right vs right
Phronesis
Wisdom, knowledge through experience
Epistome
Book knowledge
Techne
Technical knowledge, skill
Impartial Spectator
Adam smiths theory of an outside perspective telling you the right thing to do
Power of the Purse
Where you put your money has a big influence on the decisions of businesses
Adam smith
Wealth of nations, theory of moral sentiments
Economic moat
Separating yourself as a business creating a most from competitors
