Values - 06:44 Values desirable principle or quality Ethics...

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06:44 Values- desirable principle or quality Ethics- considering whether our actions are right or wrong, beliefs about what is  right or wrong what come from inside us Values define your ethics (how you act) Ethical dilemmas- when values we hold are in conflict Truth vs. loyalty Individualism vs. community Justice vs. mercy Case Presentation Information 15 to 20 min Critique- ask them questions, facilitate discussions, ask for insight and thought Can meet with your group over email Natural price- lowest price a product can be brought to market, or the price under  perfect competition Classical model- businesses should pursue business in their own self interest Adam Smith- self interest and injustice Not a lot of government intervention in the free market Free flow of resources- labor, capital and land
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Class 6 Milton Friedman  Hat is the essence of the free market- pursue self interest Capitalism works when transactions are bilaterally voluntary and informed Values of the free market Checks the power of government Facilitates innovation More freedom  Protect from coercion  Separation of political views and economic activity  What is gov’t role? What is the social responsibility of business? Big tradeoffs-  Equality vs efficiency  Individualism vs paternalism Class 7 Diantological theory  Movie day- enron and super size me Merck and Vioxx and the Tobacco Companies 
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Arthur Okun- lack of equality, we shouldn’t just consider efficiency but also need  to consider equality and fairness Don’t all come into the world with the same endowments  Equity and the market  People should have an equal opportunity Promotes a greater role of government into the free market  Enlightened self interest- know for exam Market vs non-market failure Freedman and Okun- okun more redistribution How to redistribute income? Taxes and subsidy, food stamps Income=wages x hours + interest x capital  MARKET FAILURES Can need the government to help these  Monopolies Economies of scale Capital difficulty Product differentiation  Government franchise  Externality
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Where the social cost exceeds the private cost Dumping into creeks Pollution Public/social goods Lakes/parks Schools Fireman/police o Consumption of the good is available to all o Non-exclusionary Lack of information Class 10 Market failures/non Market failures  Banks sold mortgages with different interest rate, loan value, terms, location,  value of house  Has the market failed? Self interest does not result in the invisible hand 
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Values - 06:44 Values desirable principle or quality Ethics...

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