Economics 1776 Study Guide - Midterm Guide: Total Depravity, Limited Atonement, Invisible Hand
18 Jun 2018
School
Department
Course
Professor
No#multiple#choice,#some#short#answers#and#probably#short#response#(more#essay-
like),#shouldn't#be#any#quotation#type#questions
Bulk#of#questions#from#primary#sources
•
Some#questions#from#lectures
•
Final#and#least#important#category#-- secondary#readings
•
Everything#up#to#Pierre#Nichol#is#fair#game#-- including#readings#and#lectures
World#image:#German#word
§
Pre-analytic#Vision#-- which#author?
§
Focus#on#World#View#when#studying
§
World#View#-- assumptions#that#you#bring#to#a#question
○
Relationship#between#religion#and#capitalism#
§
Calvinism#is#essential#to#Weber's#theory
§
Weber#is#interested#in#economic#behavior
§
Differing#views#from#Friedman
§
Don't#focus#too#much#on#Weber
§
Max#Weber
○
Introductory
•
Mandeville#and#Smith
○
Reconsidering#the#social#benefits#of#self-interest
○
Private#vices#lead#to#public#benefits
§
Vice#is#any#action#motivated#by#self-interest
§
Benefits#include#economic#prosperity
§
Crucial#here#is#that#vice#is#not#only#good,#but#necessary
§
When#Mandeville#talks#about#vices#that#have#benefits,#he#includes#
extreme#luxury,#injustice,#etc
§
Virtue#is#counter-productive
§
Mandeville:
○
Relationship#between#smith#and#Mandeville
®
Relationship#between#smith#and#smith
®
Calvinism#vs.#Armenianism
®
Keep#these#three#in#mind#when#studying#Smith□
Imagination#leads#to#fellow#feeling
®
Sympathy#allows#me#to#reach#a#similar#emotion#to#what#
one#is#feeling
®
The#judge#that#stands#outside#of#you
◊
Used#to#judge#your#own#actions#and#the#actions#of#
others
◊
Impartial#spectator#allows#you#to#look#at#a#situation#
from#someone#else's'#shoes#
®
Vanity#=#being#praised#when#not#
praiseworthy
}
Something#honorable#about#doing#what's#
praiseworthy#even#when#there's#no#praise
}
While#we#desire#praise,#we#don't#just#desire#praise#
but#want#to#be#praiseworthy
◊
Praise#and#praiseworthiness
®
Imagination,#sympathy,#impartial#spectator□
Sometimes#good,#sometimes#bad
®
Self-interest□
Relationship#between#lords#in#the#country#and#
manufacturing#in#the#town#-- the#self-interested#actions#
of#the#lord#unintentionally#benefit#the#society.#The#
invisible#hand#is#the#unintended#consequences#of#such#
behavior.#Independence#is#what#Smith#is#most#
concerned#with#(Lords#buying#merchant's#goods#allows#
others#to#be#more#economically#independent)
®
Concept#of#the#invisible#hand#arises□
Theory#of#Moral#Sentiments
§
Global#benefits#of#self-interest#in#a#something setting□
Market.mechanism:##supply#and#demand,#competition□
People's#self-interest#balances#profits□
Competition#and#market#mechanism#is#what#rewards#
industry,#ingenuity
□
Leads#to#division#of#labor#and#specialization
}
Example.of.pinfactory.w/.nails.(???)
}
Understand#specific#noteworthy#passages#
that#were#mentioned#in#class#-- check#out#
lecture#slides#with#quotations#on#them
}
Leads#to#Exchange
◊
Bettering#your#position#means#I#will#be#more#
prosperous#economically
®
Assumption:#everyone#wants#to#better#their#position□
Foreign#vs#domestic#capital#investments
®
Why#it#is#a#gov#doesn't#need#to#create# rules#requiring#to#
invest#domestically#rather#than#abroad?#
®
Smith#is#opposed#to#rules,#but#understands#that#
certain#things#happen#by#virtue#of#invisible#hand
◊
Merchantilist#mode#of#thought#is#that#you#always#want#
to#increase#exports#and#minimize#imports
®
Invisible#hand#reappears#in#Wealth#of#Nations:#□
Wealth#of#Nations
§
Wealth#of#Nations:#some#degree#of#sympathy#and#the#
impartial#spectator#makes#possible#exchange
®
Distinction#between#necessaries#and#luxuries
®
Distinction#between#when#people#are#content#with#their#
wealth
®
Concept#of#sociability:#□
Division#of#labor#will#so#specialized#that#people#will#
cease#being#normal#human#beings
®
Smith#trust#people's#self-interst#and#producers,#not#as#
consumers
®
Smith's#concerns#over#where#the#economy#is#going□
Smith#is#interested#in#a#science#of#man#and#a#science#of#
the#economy
®
Observable#first#principles,#system#of#universal#laws
®
Newtonianism is#important#for#understanding#Adam#Smith□
How.they.do.or.do.not.fit.together
®
Consumption
◊
Admiration.for.the.rich
◊
Thoughts.about
®
The.Adam.Smith.problem:.how.did.TMS.influence.the.
Wealth.of.Nations?
□
Relationship#between#Wealth#of#Nations#and#TMS:
§
Check#out#notes#from#lecture#on#Hobbes,#Shaftesbury,#Hutchenson#
and#Hume#in#relation#to#Smith#and#Mandeville
§
Smith:
○
Political#Economy
•
Human.send.by.necessity,.not.by.compulsion
§
Principle#complains#of#Calvinism:#it#is#pessimistic,#it#discourages#
action.#Armenians#would#say#it#discourages#virtue/moral#behavior#
and#says#total#depravity#and#predestination#are#unbiblical
§
Calvinism:#predestination,#total#depravity:#total#depravity#means#we#have#
no#ability#to#choose#God#for#ourselves,#and#God#choosing#us#is#called#Total#
Depravity
○
Total#depravity:#they#disagree,#if#we#aren't#totally#depraved#we#are#
redeemable
§
Unconditional#Election:#
§
Limited#Atonement:#it#is#not#limited,#it#is#universal,#which#means#
anyone#can#be#saved,#but#not#everyone#will#be#saved
§
Irresistible:#grace#is#irresistible#for#Armenians,#you#can#choose#to#be#
bad
§
Perseverance#of#the#saints:#for#Armenians,#because#based#on#own#
agency,#it#is#something#that#can#be#gained#and#lost#(
§
Foreknowledge:#God#knows#how#we#are#going#to#act,#our#salvation#
is#contingent#on#our#actions
§
Of#Armenian#texts,#the#Wesley#(???)##would#be#the#one#to#know
§
Arminianism
○
Idea#that#we#can#know#about#God#from#looking#at#the#world#about#
us#(via#reason,#observation,#science,#or#any#natural#methods)#
instead#of#from#God's#revelations#in#the#bible
§
John#May…#something#wrote#on#Natural#theology
§
Adam#Smith:#moral#philosophy#into#natural#theology#passages#
§
Natural#Theology
○
Primary.sources
§
Know.what.both.Calvins.and.Armenians.believe
○
Theology•
Total.Depravity
Unconditional.Election
Limited.Atonement.
Irresistible.
Perseverance.of.the.Saints
UNDERSTAND.DEBATES.BETWEEN.SMITH/MANDEVILLE.AND.
CALVINISTS/ARMENIANS
!"#$%&'()%*"%+(,-./-0/-12
Monday,#October#16,#2017
6:03#PM
No#multiple#choice,#some#short#answers#and#probably#short#response#(more#essay-
like),#shouldn't#be#any#quotation#type#questions
Bulk#of#questions#from#primary#sources•
Some#questions#from#lectures•
Final#and#least#important#category#-- secondary#readings•
Everything#up#to#Pierre#Nichol#is#fair#game#-- including#readings#and#lectures
World#image:#German#word
§
Pre-analytic#Vision#-- which#author?
§
Focus#on#World#View#when#studying
§
World#View#-- assumptions#that#you#bring#to#a#question
○
Relationship#between#religion#and#capitalism#
§
Calvinism#is#essential#to#Weber's#theory
§
Weber#is#interested#in#economic#behavior
§
Differing#views#from#Friedman
§
Don't#focus#too#much#on#Weber
§
Max#Weber
○
Introductory•
Mandeville#and#Smith
○
Reconsidering#the#social#benefits#of#self-interest
○
Private#vices#lead#to#public#benefits
§
Vice#is#any#action#motivated#by#self-interest
§
Benefits#include#economic#prosperity
§
Crucial#here#is#that#vice#is#not#only#good,#but#necessary
§
When#Mandeville#talks#about#vices#that#have#benefits,#he#includes#
extreme#luxury,#injustice,#etc
§
Virtue#is#counter-productive
§
Mandeville:
○
Relationship#between#smith#and#Mandeville
®
Relationship#between#smith#and#smith
®
Calvinism#vs.#Armenianism
®
Keep#these#three#in#mind#when#studying#Smith
□
Imagination#leads#to#fellow#feeling
®
Sympathy#allows#me#to#reach#a#similar#emotion#to#what#
one#is#feeling
®
The#judge#that#stands#outside#of#you
◊
Used#to#judge#your#own#actions#and#the#actions#of#
others
◊
Impartial#spectator#allows#you#to#look#at#a#situation#
from#someone#else's'#shoes#
®
Vanity#=#being#praised#when#not#
praiseworthy
}
Something#honorable#about#doing#what's#
praiseworthy#even#when#there's#no#praise
}
While#we#desire#praise,#we#don't#just#desire#praise#
but#want#to#be#praiseworthy
◊
Praise#and#praiseworthiness
®
Imagination,#sympathy,#impartial#spectator
□
Sometimes#good,#sometimes#bad
®
Self-interest
□
Relationship#between#lords#in#the#country#and#
manufacturing#in#the#town#-- the#self-interested#actions#
of#the#lord#unintentionally#benefit#the#society.#The#
invisible#hand#is#the#unintended#consequences#of#such#
behavior.#Independence#is#what#Smith#is#most#
concerned#with#(Lords#buying#merchant's#goods#allows#
others#to#be#more#economically#independent)
®
Concept#of#the#invisible#hand#arises
□
Theory#of#Moral#Sentiments
§
Global#benefits#of#self-interest#in#a#something setting
□
Market.mechanism:##supply#and#demand,#competition
□
People's#self-interest#balances#profits
□
Competition#and#market#mechanism#is#what#rewards#
industry,#ingenuity
□
Leads#to#division#of#labor#and#specialization
}
Example.of.pinfactory.w/.nails.(???)
}
Understand#specific#noteworthy#passages#
that#were#mentioned#in#class#-- check#out#
lecture#slides#with#quotations#on#them
}
Leads#to#Exchange
◊
Bettering#your#position#means#I#will#be#more#
prosperous#economically
®
Assumption:#everyone#wants#to#better#their#position
□
Foreign#vs#domestic#capital#investments
®
Why#it#is#a#gov#doesn't#need#to#create# rules#requiring#to#
invest#domestically#rather#than#abroad?#
®
Smith#is#opposed#to#rules,#but#understands#that#
certain#things#happen#by#virtue#of#invisible#hand
◊
Merchantilist#mode#of#thought#is#that#you#always#want#
to#increase#exports#and#minimize#imports
®
Invisible#hand#reappears#in#Wealth#of#Nations:#□
Wealth#of#Nations
§
Wealth#of#Nations:#some#degree#of#sympathy#and#the#
impartial#spectator#makes#possible#exchange
®
Distinction#between#necessaries#and#luxuries
®
Distinction#between#when#people#are#content#with#their#
wealth
®
Concept#of#sociability:#□
Division#of#labor#will#so#specialized#that#people#will#
cease#being#normal#human#beings
®
Smith#trust#people's#self-interst#and#producers,#not#as#
consumers
®
Smith's#concerns#over#where#the#economy#is#going□
Smith#is#interested#in#a#science#of#man#and#a#science#of#
the#economy
®
Observable#first#principles,#system#of#universal#laws
®
Newtonianism is#important#for#understanding#Adam#Smith□
How.they.do.or.do.not.fit.together
®
Consumption
◊
Admiration.for.the.rich
◊
Thoughts.about
®
The.Adam.Smith.problem:.how.did.TMS.influence.the.
Wealth.of.Nations?
□
Relationship#between#Wealth#of#Nations#and#TMS:
§
Check#out#notes#from#lecture#on#Hobbes,#Shaftesbury,#Hutchenson#
and#Hume#in#relation#to#Smith#and#Mandeville
§
Smith:
○
Political#Economy•
Human.send.by.necessity,.not.by.compulsion
§
Principle#complains#of#Calvinism:#it#is#pessimistic,#it#discourages#
action.#Armenians#would#say#it#discourages#virtue/moral#behavior#
and#says#total#depravity#and#predestination#are#unbiblical
§
Calvinism:#predestination,#total#depravity:#total#depravity#means#we#have#
no#ability#to#choose#God#for#ourselves,#and#God#choosing#us#is#called#Total#
Depravity
○
Total#depravity:#they#disagree,#if#we#aren't#totally#depraved#we#are#
redeemable
§
Unconditional#Election:#
§
Limited#Atonement:#it#is#not#limited,#it#is#universal,#which#means#
anyone#can#be#saved,#but#not#everyone#will#be#saved
§
Irresistible:#grace#is#irresistible#for#Armenians,#you#can#choose#to#be#
bad
§
Perseverance#of#the#saints:#for#Armenians,#because#based#on#own#
agency,#it#is#something#that#can#be#gained#and#lost#(
§
Foreknowledge:#God#knows#how#we#are#going#to#act,#our#salvation#
is#contingent#on#our#actions
§
Of#Armenian#texts,#the#Wesley#(???)##would#be#the#one#to#know
§
Arminianism
○
Idea#that#we#can#know#about#God#from#looking#at#the#world#about#
us#(via#reason,#observation,#science,#or#any#natural#methods)#
instead#of#from#God's#revelations#in#the#bible
§
John#May…#something#wrote#on#Natural#theology
§
Adam#Smith:#moral#philosophy#into#natural#theology#passages#
§
Natural#Theology
○
Primary.sources
§
Know.what.both.Calvins.and.Armenians.believe
○
Theology•
Total.Depravity
Unconditional.Election
Limited.Atonement.
Irresistible.
Perseverance.of.the.Saints
UNDERSTAND.DEBATES.BETWEEN.SMITH/MANDEVILLE.AND.
CALVINISTS/ARMENIANS
!"#$%&'()%*"%+(,-./-0/-12
Monday,#October#16,#2017 6:03#PM
Document Summary
No multiple choice, some short answers and probably short response (more essay- like), shouldn"t be any quotation type questions. Everything up to pierre nichol is fair game -- including readings and lectures. Final and least important category -- secondary readings. World view -- assumptions that you bring to a question. Crucial here is that vice is not only good, but necessary. When mandeville talks about vices that have benefits, he includes extreme luxury, injustice, etc. Keep these three in mind when studying smith. Sympathy allows me to reach a similar emotion to what one is feeling. Impartial spectator allows you to look at a situation from someone else"s" shoes. Used to judge your own actions and the actions of others. While we desire praise, we don"t just desire praise but want to be praiseworthy. Something honorable about doing what"s praiseworthy even when there"s no praise.
