Foundations of Management

Question 1

Profits are a reward for risk for the entrepreneur who facilitates production. (Theorist?)

Answer 1

Adam Smith

Question 2

Economic growth is possible through increasing production. (Theorist?)

Answer 2

Adam Smith

Question 3

The agent of economic growth should be the invisible hand of the market. (Theorist?)

Answer 3

Adam Smith

Question 4

Human beings are naturally productive, if left to their own devices they will naturally try to shape the world around them through production. (Theorist?)

Answer 4

Karl Marx

Question 5

Profits extracted by entrepreneurs are exploitative of the labour producing them as they only recieve a fraction (wage) of the finished price of a good/service. (Theorist?)

Answer 5

Karl Marx

Question 6

Capitalism is alienating because workers are no longer participating in the production of a finished good, they are instead a cog in a machine. (Theorist?)

Answer 6

Karl Marx

Question 7

Economic planning is possible and we should not rely on the trickle-down of wealth to an entire population. (Theorist?)

Answer 7

J. M. Keynes

Question 8

The founder of macro-economics, he argued that demand and the role of the government must be considered within an economy. (Theorist?)

Answer 8

J. M. Keynes

Question 9

The state and central bank of an economy stimulate demand. They are able to spend in a way that businesses cannot, in an economic downturn. (Theorist?)

Answer 9

J. M. Keynes

Question 10

What are the features of a social democracy/ managed economy in terms of government action?

Answer 10

• Prevent the formation of monopolies and oligopolies
• Public Works Schemes: Stimulate demand and prevent unemployment in specific areas.
• Nationalised industries where natural monopolies exist.

Question 11

What is a social democracy?

Answer 11

An ideoogy which supports intervention in the market to support justice both economically and socially.

Question 12

Bureaucracy is essential in modern capitalist economies; large management hierarchies allow for the control of complex organisations. (Theorist?)

Answer 12

Max Weber

Question 13

‘Society should be shaped by the free market and the economy should be de-regulated.’ Are ideas from which type of market structure?

Answer 13

Neoliberalism

Question 14

Neoliberal H? Refers to which concept that states the rich get richer as the poor get poorer.

Answer 14

Neoliberal Hegemony

Question 15

Economies and markets are too complex to understand for those who try to control them. (Theorist?)

Answer 15

Friedrich Hayek

Question 16

Which 2 theorists believe that the state should not intefere with the market machanism?

Answer 16

Adam Smith

Friedrich Hayek

Question 17

What is Neoliberalism?

Answer 17

• A Free Market
• Very little regulation on international trade between countries.
• Free movement of labour between countries.
• De-regulated free market governs society.

Question 18

bureaucracy cannot guarantee ethical behaviour, only those running them can. (Theorist?)

Answer 18

Zygmunt Bauman