Chapter 3 Discussion: The Business System

Imran Naqvi

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Ideologies
What is meant by ideology? How does a persons ideology affect his or her behavior? Examples? What is an individualistic ideology?

What is a communitarian ideology?

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Socioeconomic Systems
What is a command system? In what ways are businesses examples of command systems? What is a market system? What are the 2 key components of a market system?

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John Locke: Free Markets & Rights

According to Locke, what are the 2 natural

rights?
Whats Lockes argument for the existence of

the 2 natural rights? Why did humans invent the institution called government?
What is the proper role of government? What should government not do?

How can Lockes ideas be used to argue in

favor of a free market system?

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John Locke: Free Markets & Rights

How have Lockes ideas influenced the

United States? What are the 4 major criticisms of Lockes defense of free markets? Considering the advocates and critics of Locke, under what circumstances is government regulation of business justified?

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Adam Smith: Utility of Free Markets

What is the utilitarian argument from Smith

in favor of the free market system?

What is the proper role of government? Can government allocate resources as

efficiently as the free market? Why?

What are the 4 major criticisms (except for

the Keynesian criticism) of Smiths defense of free markets?

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Adam Smith: Utility of Free Markets

What is the Keynesian criticism of Smiths

defense of free markets?

According to the Keynesian criticism, what is

the proper role of government? Why?

What did Herbert Spencer and other Social

Darwinists argue?
What are the criticisms of Social Darwinism?

Considering the advocates and critics of

Smith, under what circumstances is government regulation of business justified?

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Marxist Criticisms
What did Karl Marx witness that influenced

his thinking about free market capitalism? According to Marx, what are the 2 sources of income in a capitalist system?
Why do workers have to sell their labor in order

to earn a wage? What is the source of the business owners profits?

How does Marx see this as exploitation of the workers?
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Marxist Criticisms
How does Marx believe that humans should

live? According to Marx, what are the 4 forms of alienation that are produced by capitalism? According to Marx, what is the basis of the inequities produced by capitalism?

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Marxist Criticisms
In Marxs theory, what is meant by the

economic substructure?
What is meant by the forces of production? What is meant by the relations of production? What are the 2 main types of relations of production?
How did this work in feudal societies? How does this work in capitalist societies? How do the relations of production create social classes?

In Marxs theory, what is meant by the

social superstructure?
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Marxist Criticisms
According to Marx, what is the actual

function of government? According to Marx, what are the 2 basic features of capitalism
How do these features harm the working class

(the proletariat)?

How do the defenders of free market

capitalism respond to the Marxist criticisms?

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The Mixed Economy

What is meant by a mixed economy?

Considering Locke, Smith, the critics of

Locke and Smith, Marx, and the critics of Marx, what is the proper role of government in a capitalist system?
Under what conditions is government

regulation of business justified?

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Property & New Technologies

What is meant by intellectual property? What are some examples of intellectual property? How is intellectual property different from

physical property? What are the arguments in favor of treating intellectual property the same as any private property? What are the arguments in favor of the collective (or common) ownership of intellectual property?
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Property & New Technologies

What is the property system for intellectual

property in the United States?

What is a copyright? What is a patent?

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Case: Napsters Revolution

How would the modern-day, hardcore

advocate of the ideas of John Locke analyze peer-to-peer systems (such as Napster, Gnutella, and Kazaa)? How would the modern-day, hardcore advocate of the ideas of Adam Smith analyze peer-to-peer systems? How would the modern-day, hardcore advocate of the ideas of Karl Marx analyze peer-to-peer systems?
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