Markets as Cultures
Give an example of a constitutive rule
Price Integrity
paying for line-skipping privileges at airports is an example of _____
Jumping the queue
Carbon credits are an effort to reduce _____
Negative externalities
T or F: Export-led growth was favoured over domestic demand during the Keynesian and Neoliberal era
F: Domestic demand was favoured in both eras in the US and UK; in Germany and Japan, it was more export-led growth
Rules that are imposed by the government on markets.
Regulative Rules
Give an example of a common assumption regarding market transactions that does not hold in the real world.
Frictionless Transactions
First come, first serve” is the ethic of the _______
Queue
Which is not an example of an externality: 1) pollution 2) 2nd hand smoking 3) eating loudly in a movie theatre 4) the prices of a heating company's common stock decrease as global warming gets more media attention.
4) the prices of a heating company's common stock decrease as global warming gets more media attention.
___% of British Industry was nationalized during the Keynesian era?
20%
Rules that are imposed by traders on themselves and others.
Constitutive Rules
___ and ___ are the two types of market rules as described in the markets as cultures view.
Regulative and Constitutive rules
“You get what you pay for” is the ethic of the ____
_____ leads to market failure because a product or service's price equilibrium does not accurately reflect the true costs and benefits of that product or service.
Market Externalities
Neoliberal principles are based on two important policies: _____ and ______
Deregulation, Privatization
A side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved, such as the pollination of surrounding crops by bees kept for honey.
Externalities
In the Markets as Cultures view, what is the main cause of pressures for change in rules and roles?
Competition and Conflict amongst groups
Correct this Statement: Economists say that free markets allocate goods inefficiently as markets allocate goods to those who are willing to pay the most for them, not those who want the goods the most.
False: Economists say that free markets allocate goods efficiently as markets allocate goods to those who are willing to pay the most for them, not those who want the goods the most.
A firm dumps trash on another firm's property. what additional information surrounding these firms could change this event into a non-externality?
The firm is paid to have trash dumped on their property
The rise of __________ has led to a shift in the role of the state in liberal market economies, with governments playing a larger role in regulating and shaping the digital economy.
Technology
A group of firms or individuals that are socially embedded in a network of important social relations and culturally embedded in a meaning system of norms, rules, and cognitive scripts.
Market
The idea that we believe we act rationally given our goals, knowledge, and understanding of the present situation.
Local Rationality
The concept of __________ suggests that there are limits to what can be bought and sold in a market, as some goods and services have intrinsic moral or social value that cannot be quantified in monetary terms.
Inalienability
An externality of sugary foods is the negative health consequences associated with their consumption. Often, it is attempted to internalize this with a sugar tax. What would be needed for this externality to be fully internalized?
The increase in price results in the new equilibrium shifting to a socially optimal level.
Correct this: Neo-corporatism is defined as a non-cooperative relationship between an interest group and the government for the purpose of developing and implementing economic policies.
Neo-corporatism is defined as a cooperative relationship between an interest group and the government for the purpose of developing and implementing economic policies.
A cooperative relationship between an interest group and the government for the purpose of developing and implementing economic policies.
Neo-Corporatism