(L2) Theory of Moral Sentiments & Wealth of Nations

Question 1

What is the Division of Labor in ‘Wealth of Nations’?

Answer 1

Originates from a natural propensity to trade, enhancing productivity and efficiency, and driven by self-interest for societal good.

Question 2

How does Self-Interest influence Trade in ‘Wealth of Nations’?

Answer 2

Trade is driven by self-interest for mutual benefit, rather than out of kindness.

Question 3

What is the Role of Capital in ‘Wealth of Nations’?

Answer 3

Industry is limited by its capital and regulations cannot exceed capital’s capability; individual self-interest leads to societal benefit.

Question 4

What is the impact of Monopolies on Trade in ‘Wealth of Nations’?

Answer 4

Monopolies secure markets for industries, potentially benefiting domestic industry but not always advantageous.

Question 5

What is the principle of Employment of Capital in ‘Wealth of Nations’?

Answer 5

Individuals employ capital for domestic industry aiming to maximize profit, which indirectly benefits society.

Question 6

How is the Value of Industry determined in ‘Wealth of Nations’?

Answer 6

Industry’s value is determined by its product’s worth, with individuals aiming to maximize this value for societal benefit.

Question 7

What is the concept of Sympathy and Empathy in ‘Theory of Moral Sentiments’?

Answer 7

Humans naturally sympathize with others’ emotions, and empathy arises from imagining oneself in another’s situation.

Question 8

How is Sympathy important in Social Interaction in ‘Theory of Moral Sentiments’?

Answer 8

People appreciate others’ empathy and are distressed by its absence, stemming from a natural propensity to empathize.

Question 9

What is the role of Ambition and Social Perception in ‘Theory of Moral Sentiments’?

Answer 9

Ambition motivates individuals to seek wealth and status, but perceived conveniences of wealth are often illusory, and happiness is not solely found in wealth.

Question 10

How are Social and Economic Structures interconnected in ‘Theory of Moral Sentiments’?

Answer 10

Wealthy individuals distribute resources through consumption, affecting society’s overall wealth and resource distribution.

Question 11

What does ‘Theory of Moral Sentiments’ say about Happiness and Social Rank?

Answer 11

Happiness and contentment are not exclusive to the wealthy; all social ranks have potential for similar happiness.