Jeremy Bentham and Utilitarianism
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Questions and Answers

What was John Stuart Mill's view on shorter workdays?

  • He argued that shorter workdays would increase profits for capitalists.
  • He advocated for longer workdays to improve efficiency.
  • He supported shorter workdays as beneficial.
  • He believed profits were primarily made in the final hour of work. (correct)

John Stuart Mill was a proponent of gender equality and supported women's rights.

True (A)

What did Mill address in his work regarding worker rights?

Income inequality and support for worker cooperatives and profit-sharing arrangements.

Mill's major work published in 1848 is titled __________.

<p>Principles of Political Economy</p> Signup and view all the answers

Match the following aspects of Mill's economic theory to their descriptions:

<p>Production = Wealth creation through labor, capital, and resources Role of Labor = Primary source of wealth Division of Labor = Increases productivity through specialization Capital = Accumulation through savings</p> Signup and view all the answers

What is the primary focus of Jeremy Bentham's philosophy?

<p>Promoting societal happiness (D)</p> Signup and view all the answers

According to Bentham, the government should serve the interests of the people.

<p>True (A)</p> Signup and view all the answers

What does the principle of utility evaluate when determining the goodness of an action?

<p>Its impact on the happiness of the affected people</p> Signup and view all the answers

The ability of something to produce happiness or prevent pain is known as ______.

<p>utility</p> Signup and view all the answers

Match the following terms with their definitions:

<p>Utilitarianism = Philosophy aiming for the greatest happiness for the greatest number Hedonism = Pursuit of pleasure and avoidance of pain Diminishing Marginal Utility = Decrease in added happiness from increasing wealth Principle of Utility = Judging actions based on their happiness impact</p> Signup and view all the answers

Which of the following best reflects Bentham's perspective on government intervention?

<p>Government intervention is justified when special reasons exist. (C)</p> Signup and view all the answers

Bentham's approach completely supported the idea of laissez-faire economics.

<p>False (B)</p> Signup and view all the answers

What major work did Jean-Baptiste Say publish in 1803?

<p>A Treatise on Political Economy (D)</p> Signup and view all the answers

Jean-Baptiste Say supported a laissez-faire economic policy.

<p>True (A)</p> Signup and view all the answers

What did Say replace in the classical school's labor theory of value?

<p>Supply and demand</p> Signup and view all the answers

Say recognized __________ as a fourth factor of production.

<p>entrepreneurship</p> Signup and view all the answers

Match the following concepts to their descriptions:

<p>Say's Law of Markets = General overproduction is impossible Monopoly = Experiences efficiency losses Value Theory = Focus on supply and demand Entrepreneurship = Fourth factor of production</p> Signup and view all the answers

Which economist's ideas were popularized by Jean-Baptiste Say?

<p>Adam Smith (C)</p> Signup and view all the answers

Say's approach to supply and demand was more precise than that of Alfred Marshall.

<p>False (B)</p> Signup and view all the answers

What is the relationship between production and purchasing power according to Say?

<p>Directly tied</p> Signup and view all the answers

Jean-Baptiste Say emphasized that monopolists incur __________ losses.

<p>efficiency</p> Signup and view all the answers

Who was the original creator of the concept of the entrepreneur?

<p>Richard Cantillon (B)</p> Signup and view all the answers

What principle states that supply may create its own demand in the long run?

<p>Supply Creates Demand (B)</p> Signup and view all the answers

Nassau William Senior believed economists should advocate for public policies.

<p>False (B)</p> Signup and view all the answers

Who was Nassau William Senior?

<p>An economist and the first professor of political economy at Oxford.</p> Signup and view all the answers

Senior's approach that focuses on examining economic phenomena is known as __________ economics.

<p>positive</p> Signup and view all the answers

In market-based economies, what might happen in the short run even if production costs are covered?

<p>Demand may not match supply. (A)</p> Signup and view all the answers

Match the following economic concepts with their descriptions:

<p>Positive Economics = Focuses on understanding economic phenomena Normative Economics = Concerned with what ought to be Supply-Demand Theory = Explains how supply creates demand in the long run Production and Distribution = Study of wealth movement in an economy</p> Signup and view all the answers

As an economy expands, it decreases payments to workers.

<p>False (B)</p> Signup and view all the answers

What is the main focus of normative economics?

<p>What ought to be.</p> Signup and view all the answers

Nassau Senior believed the role of the economist is to communicate __________ ideas.

<p>fundamental</p> Signup and view all the answers

Which of the following best describes Nassau Senior's contribution to economic thought?

<p>He favored a neoclassical approach. (A)</p> Signup and view all the answers

What does the Principle of Income or Utility Maximization state?

<p>People aim to increase their wealth with minimal sacrifices. (A)</p> Signup and view all the answers

According to Senior, capital accumulation does not rely on reinvesting products.

<p>False (B)</p> Signup and view all the answers

What term did Nassau Senior introduce to describe the decision not to consume resources immediately?

<p>Abstinence</p> Signup and view all the answers

The __________ principle states that adding more labor to a fixed amount of land will result in diminishing returns.

<p>Principle of Diminishing Returns</p> Signup and view all the answers

Match the following principles to their descriptions:

<p>Principle of Income Maximization = People aim to increase wealth with minimal sacrifices. Principle of Population = Population is limited by moral or physical issues. Principle of Capital Accumulation = Reinvesting products leads to increased production possibilities. Principle of Diminishing Returns = More labor results in less proportional output gain.</p> Signup and view all the answers

How does demand change according to the principle of diminishing marginal utility?

<p>Satisfaction decreases as more units are consumed. (B)</p> Signup and view all the answers

Alfred Marshall preferred the term 'waiting' over 'abstinence' because it connotes hardship associated with wealth acquisition.

<p>False (B)</p> Signup and view all the answers

What is the mathematical expression relating savings to interest rates?

<p>S = f(i)</p> Signup and view all the answers

Investment spending declines when the __________ of investing rises.

<p>opportunity cost</p> Signup and view all the answers

Which of the following best describes the role of abstinence in economics according to Senior?

<p>Abstinence is essential for effective wealth generation. (B)</p> Signup and view all the answers

Flashcards

Utilitarianism

A moral philosophy that judges actions based on their ability to produce the greatest happiness for the greatest number of people.

Hedonism

The belief that people naturally seek pleasure and avoid pain. It focuses on individual happiness.

Utility

The ability of something to produce benefit, happiness, or to prevent harm and unhappiness.

Principle of Utility

A guide for judging actions based on whether they increase or decrease happiness for those affected.

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Diminishing Marginal Utility

The idea that as someone gets more of something, the additional happiness or satisfaction they get from each extra unit decreases.

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Bentham's View on Government

Bentham believed that the government's role is to serve the people and maximize their happiness, not the other way around.

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Bentham on Laissez-Faire

Bentham did not blindly follow laissez-faire. He believed government intervention is justified if it benefits society.

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Mill's View on Economics

Mill believed that profits were not solely derived from the final hour of work, but also from factors like materials, building costs, and productivity gains. He argued that reducing the workday could actually increase efficiency.

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Mill's Support for Worker Rights

Mill advocated for fairer distribution of wealth and worker rights. He supported worker cooperatives and profit-sharing arrangements to address labor exploitation.

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Mill's Argument for Women's Rights

Mill argued that women should have equal opportunities in work and politics, challenging the notion that they were inferior in capabilities.

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Factors of Production (Mill)

Mill identified labor, capital, and natural resources as the key factors that contribute to the creation of wealth.

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Mill's Book on Political Economy

Mill's 'Principles of Political Economy' explores various aspects of economics, including production, distribution, and government intervention.

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Say's Law of Markets

The idea that general overproduction is impossible because production creates demand. It's a theory about the relationship between supply and demand in the economy.

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Jean-Baptiste Say

A French economist who popularized Adam Smith's ideas and is known for Say's Law of Markets.

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Labor Theory of Value

A theory that the value of a good is determined by the amount of labor used to produce it.

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Supply and Demand

The economic forces that determine the price of a good. The amount of a good available and the amount people are willing to buy.

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Entrepreneurship

The act of creating and managing a business, involving innovation, risk-taking, and resource allocation.

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Costs of Monopoly

The economic losses associated with a monopoly, including deadweight losses and the costs of maintaining and achieving a monopoly.

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Deadweight Loss

A decrease in social welfare caused by a monopoly that charges higher prices and produces less output.

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Why was Say's career delayed?

Napoleon disagreed with his radical laissez-faire principles.

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What did Say emphasize about entrepreneurship?

It is a fourth factor of production along with land, labor, and capital.

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Utility Maximization Principle

People strive to increase their wealth using the least effort, maximizing their benefits while minimizing sacrifices.

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Population Principle

Population growth is limited by factors like morality, physical challenges, and fear of resource scarcity.

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Capital Accumulation Principle

Continuously expand production by reinvesting profits into new productive processes.

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Diminishing Returns Principle

Adding more labor to a fixed area of land eventually yields less additional output per unit of labor.

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Abstinence in Economics

The act of delaying consumption to invest resources, creating future gains.

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Abstinence as a Productive Principle

Abstinence, labor, and natural resources are the three drivers of wealth creation.

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Abstinence vs. Waiting

Alfred Marshall changed the term 'abstinence' to 'waiting,' emphasizing postponing consumption.

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Saving and Investment

Saving creates new investment spending, and the higher the interest rate, the more people save.

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Investment Spending and Interest Rates

Investment spending decreases when the interest rate (opportunity cost of investing) increases.

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Relationship Between Saving and Investment

Saving and investment are intertwined, with saving driving investment spending.

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Say's Law

The idea that production creates its own demand, ensuring that all goods produced will be bought.

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Short-term vs. Long-term Demand

While Say's Law might hold true in the long run, in the short term, there's no guarantee that people will spend their money on available goods.

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Positive Economics

A branch of economics focusing on objective analysis and understanding of economic phenomena, avoiding value judgments or policy recommendations.

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Normative Economics

A branch of economics concerned with what 'ought to be,' using economic principles to advocate for public policies.

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Economist's Role

To understand and communicate economic principles without providing direct policy advice.

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Senior's Approach to Economics

Nassau William Senior believed economics should focus on the production and distribution of wealth, not promoting happiness or well-being.

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Who Makes Recommendations?

Senior argued that writers and statesmen should make recommendations after considering all factors, including economic insights.

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Senior and Classical Economics

He departed from classical economics, favoring the neoclassical approach that emerged later.

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Senior's Contributions

He contributed to the development of positive economics, emphasizing objective analysis and separating it from prescriptive political economy.

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Separating Economics from Policy

Senior's emphasis on separating economic analysis from policy recommendations laid the groundwork for a more objective approach to economics.

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Study Notes

Jeremy Bentham (1748-1832)

  • Born February 15, 1748, in London, England
  • Educated at Oxford at age 12, earning a bachelor's degree at 15
  • Studied law at Lincoln's Inn
  • Founder of modern utilitarianism
  • Advocated for the "principle of greatest happiness of the greatest number"

Utilitarianism

  • The principle of greatest happiness
  • Hedonism: People seek pleasure and avoid pain; maximize total pleasure
  • Utilitarianism extends hedonism by aiming for greatest happiness for most people
  • Balances highly individualistic focus with importance of societal well-being

Utility

  • Ability of something to produce benefit, advantage, pleasure, good, or happiness
  • Or to prevent mischief, pain, evil, or unhappiness

Principle of Utility

  • Human actions are governed by pleasure and pain
  • Judged as good or bad based on likelihood to increase happiness of those affected
  • Promotes actions increasing overall community happiness

Implications of Bentham's Ideas

  • Legislators should aim to increase community happiness, prioritize popular needs
  • Government intervention is justified in situations requiring it
  • Money is a measure of pleasure/pain

Criticisms of Utilitarianism

  • Assessments of pleasure/pain are subjective, varying among individuals
  • Interpersonal utility comparisons are needed but difficult to measure precisely
  • Money was used as a measure of unit of utility by Bentham
  • Challenged as a complete philosophy for human behavior, claiming that other factors exist beyond the pursuit of pleasure and avoidance of pain.

Jean-Baptiste Say (1767–1832)

  • French economist who popularized Adam Smith's ideas in Europe
  • Published "Treatise on Political Economy" in 1803
  • Professor of political economy later in his career
  • Criticized the labor theory of value, emphasizing supply and demand
  • Contributed to understanding costs of monopoly
  • His analysis was more advanced than Ricardo's approach to supply/demand

Nassau William Senior (1790–1864)

  • Eldest son of a clergyman
  • Oxford's first professor of political economy
  • Economic studies emphasized production/distribution of wealth.
  • Divided economic analysis into 4 categories (income/utility maximization, population, capital accumulation, diminishing returns)
  • Separated positive economics from value judgements

John Stuart Mill (1806-1873)

  • Early intellectual prodigy, educated by his father
  • Concerned about income inequality and supported worker cooperatives, profit sharing
  • Advocated for gender equality
  • Published "Principles of Political Economy" in 1848

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Description

Explore the life and ideas of Jeremy Bentham, the founder of modern utilitarianism. This quiz covers his principles, the concept of utility, and the implications of his philosophy. Test your understanding of how Bentham's thoughts on happiness and societal well-being have shaped ethical discussions.

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