MGT610 Midterm Solved Subjective by Junaid

Q1. What traits are the valuable parts of person’s morally good behavior?

Answer: According to Aristotle, moral virtues enable humans to act in accordance with their specific purpose (which he held to be reasoning). Other philosophers, such as Aquinas, have come up with different lists of virtues.

Q1. In perfect compaction the demand curve is always downward slopping. Why?

Answer: Under the assumption of perfect competition, supply is determined by marginal cost. Firms will produce additional output as long as the cost of producing an extra unit of output is less than the price they will receive. The demand curve is almost always represented as downward-sloping, meaning that as price decreases, consumers will buy more of the good.

2. What are the two ideological camps in free trade theories? Explain in detail

Answer: In general, two important ideological camps, the individualistic and communitarian viewpoints, characterize modern societies. Individualistic societies promote a limited government whose primary purpose is to protect property, contract rights, and open markets. Communitarian societies, in contrast, define the needs of the community first and then define the rights and duties of community membership to ensure that those needs are met.

Q3. What is monopolistic and oligopolistic competition? Explain the main points of difference?

Answer: In a monopoly, two of the seven conditions are absent: there is only one seller, and other sellers cannot enter the market. As the case of Alcoa exemplifies, such markets are far from the perfectly competitive model. Most industries are not entirely monopolistic; in fact, most are dominated by a few large firms. These markets lie somewhere in between the monopoly and the perfectly competitive free market; the most important type of these imperfectly competitive markets is the oligopoly.

Q4. Define Law of Nature?

Answer: “A state of perfect freedom to order their actions and dispose of their possessions and persons as they think fit, within the bounds of the law of nature, without asking leave, or depending upon the will of any other man. A state also of equality, wherein all the power and jurisdiction is reciprocal, no one having more than another... without subordination or subjection [to another].... But... the state of nature has a law of nature to govern it, which obliges everyone: and reason, which is that law, teaches all mankind, who will but consult it, that being all equal and independent, no one ought to harm another in his life, health, liberty, or possessions.”

Q5. Describe Social Darwinism?

Answer: Social Darwinism is a belief, popular in the late Victorian era in England, America, and elsewhere, which states that the strongest or fittest should survive and flourish in society, while the weak and unfit should be allowed to die. The theory was chiefly expounded by Herbert Spencer, whose ethical philosophies always held an elitist view and received a boost from the application of Darwinian ideas such as adaptation and natural selection.

6. Define theory of Absolute Advantage. Compare it with Comparative advantage? ANSWER:

In 1776 Adam Smith asserted that the wealth of a nation consisted of the goods and services available to its citizens. His theory of absolute advantage holds that a country can maximize its own economic well being by specializing in the production of those goods and services that it can produce more efficiently than any other nation and enhance global efficiency through its participation in (unrestricted) free trade. In 1817 David Ricardo reasoned that there would still be gains from trade if a country specialized in the production of those things it can produce most efficiently, even if other countries can produce those same things even more efficiently. Put another way, Ricardo’s theory of comparative advantage holds that a country can maximize its own economic wellbeing by specializing in the production of those goods and services it can produce relatively efficiently and enhance global efficiency through its participation in (unrestricted) free trade

7. A question related to Limitation of the Locke.

Answer: John Locke: The Limitations of Government Power An important aspect of all social contract arguments is the placement of limits, both on the power of the government and on the level of state tolerance. John Locke wrote of the limitations of government power in the Second Treatise of Government, and of the limits of toleration in his Letter Concerning Toleration. Locke claims that there is a moral limitation on the on the state as well as a moral limitation on tolerance.

Man's main purpose for forming commonwealths, according to Locke, is in order to protect property. All laws and regulations of the commonwealth are based on the main principle of preserving property. The state is thus limited in that it cannot take a man's property away from him. If he has consented to the contract necessary to live in the state, his property is thusly protected by laws. The only way a man's property can be taken away is if he breaks his end of the contract and is therefore no longer under contract.

Q8. Features of market economy?

Answer: Free choice: individuals have purchase options. Free enterprise: companies can decide what to produce and which markets to compete in. Price flexibility: prices rise/fall reflecting supply and demand. Focus on China China’s theme is “Socialism with Chinese characteristics,” and the nation has undergone great economic reform over the past two decades.

•  Early Years
•  Challenges Ahead

9. Define Principal of diminishing marginal utility with example

Answer: A law of economics stating that as a person increases consumption of a product - while keeping consumption of other products constant - there is a decline in the