The Ricardian Law of Association

• What does the law of association show with regard to the division of labor?

• Consider the following example (note that Sally is more productive in both lines):

1 Unit of p

1 Unit of q

Joe

3 hours

2 hours

Sally

2 hours

1 hour

If Joe and Sally each give 60 hours to producing p and 60 hours to producing q, what would each get to consume in isolation? Is there a way they could cooperate so that (with the same expenditure of 120 hours each) they each consumed more of both goods than was possible without trade? (Hint: Suppose that Joe specializes entirely in the production of good p.)

• What is the difference between the law of

association and the law of comparative cost?

• How does the law of association relate to free

trade?

• How does the mobility of factors of production

affect Ricardo's law?

5.

The Effects of the Division of Labor

• Why does the division of labor intensify the

innate inequality of men?

6.

The Individual Within Society

• What is the natural state of man?

• Why is it romantic nonsense to praise the days

of primitive barbarism?

Comment: "The mystical experience of commun-

ion or community is not the source of societal

relations, but their product."

7.

The Great Society

• Why is peace preferable to war?

• What does society always imply with regard to

human interactions?

8.

The Instinct of Aggression and

Destruction

• What is meant by "social Darwinism"? Is the

term still used today?

• What distinguishes man from other animals?

• How did utilitarians show that cooperation is beneficial for the "most efficient" and the "less efficient"?

• Why do utilitarians recommend equality under the civil law?

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