Professional Ethics, Notes Week 10 Part 2
Professional Ethics, Notes Week 10 Part 2 PHI 1120, Professional Ethics
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PHI 1120, Professional Ethics
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This 0 page Class Notes was uploaded by Chloe Luyet on Thursday March 24, 2016. The Class Notes belongs to PHI 1120, Professional Ethics at Wayne State University taught by Dr. Ryan Fanselow in Winter 2016. Since its upload, it has received 17 views. For similar materials see Professional Ethics in PHIL-Philosophy at Wayne State University.
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Date Created: 03/24/16
Learning 1 Be Objectives able to de ne ParetoImprovement and ParetoOptimal 2 Understand the argument that free market exchanges are Pareto Improvements 3 Understand Arrow s criticisms of Friedman Comprehension Quiz Arrow argues in favor of corporate social responsibility o3 fundamental inside concept of capitalism everyone will be better off if they look after themselves Capitalism Cost Bene t Producer Raw Materials Pro t Consumer Money Product gt no one has to pay for a cost they don t bene t from in some way or another gt aw l costs could outweigh the bene ts 0 not true in free market bc everyone agrees to the exchange they make and everyone acts freely no one has a gun to their head in a matter of speaking neither to sell the product nor to purchase it Learning Objective 1 a Pareto Improvement i an exchange constitutes a Pareto improvement if and only if 1 at least one person is made better wo making anyone else worse off no reason to say no to this it s a good thing right 1 EX b4 the exchange I have 10 and you have 2 a after exchange I have 20 and you have 2 i This is a Pareto Improvement b after exchange I have 9 and you have 8 i This is NOT a Pareto Improvement c after exchange I have 11 and you have 1 i This is NOT a Pareto Improvement d after exchange l have 10 and you have 3 i This is a Pareto Improvement b Pareto Ef ciency i an outcome is Paretoef cient when no more Pareto improvements can be made 1 That is no one could be made better off wo making someone else worse off ll Learning Objective 3 a 5 arguments of ArrowCriticisms of Friedman i Arrow says that Friedman s argument assumes that there s competition in the industry Friedman forgets about monopolies When there are monopolies Friedman s argument is rendered useless ii Produces increasing inequality Paretoimprovement 1 some people care that distribution of goods is more equal iii There s a worry of a bad side effect of the capitalist message if everyone only worries about themselves creates people w bad character and sel sh motives iv Externalities 1 the argument for pro t maximization relies on the assumption that companies buy any resources they use a therefore it assumes that they bear the costs that they impose on society b but this isn t true in some cases EX Pollution traf c congestion traf c accidents i EX tearing up the roads if you don t have a car but I do you still pay the same taxes to maintain the roads that l ruin ii these are EXTERNALITIES 2 Arrow says that even if you believe in ef ciency you should also favor corporate social responsibility bc it reduces externalities v The Knowledge Problem 1 EX If you don t know what you re buying you might buy something that doesn t bene t you like some used cars 2 Friedman would say although it s true that consumers can t know everything they still have access to tons of sources testimony of other consumers and professionally a hard to do when product keeps changing new car modelsphones etc b hard to do when something happens to the extreme death