113 Cards in this Set
| Front | Back |
|---|---|
|
what does it mean to say that large retailers now follow a "pull" business model?
|
they can tell manufacturers what to produce and also set the price they are willing to pay manufactureres
|
|
the video Is Walmart Good for America highlights Walmart as a monopsony, which points to:
|
all of the above
|
|
pull factor is:
|
a term used to describe community's or retail outlet's ability to draw consumers to a community
|
|
pull factor =
|
city retail sales per capita/ state retail sales per capita
|
|
if the pull factor is ____, more money is going into the city
|
greater than one
|
|
if the pull factor is ____, more money is leaking out of the city
|
less than one
|
|
the pull factor for host counties of walmart ____
|
jumps; more money is coming in, leaking from surrounding places. but, doesn't measure the circulation of the money once it's in the city
|
|
the pull factor for non-host counties ____
|
decreases
|
|
the pull factor can also decrease from money leaking out of:
|
stores that don't directly compete w/ walmart (average furniture/ building material stores)
-walmart = one stop shop
|
|
walmart math
|
Y jobs created - X jobs destroyed = less than what's promised
|
|
walmart has ___ jobs per dollar of sale
|
fewer
-economies of scale
-walmart doesn't need as many people
|
|
In Lake Charles, LA, neighbors of a Walmart watched their property values:
|
drop 28% w/in the first 4 years after the store opened
|
|
at any point in time, Walmart realty has between 350 and 400____
|
dead stores or "dark stores" on the market; more than 28 million square footage of empty space
|
|
Walmart would ___ its prices as and when competitors disappeared
|
"lift"
-prices are lower near other pharmacies in Little Rock, and higher in more remote towns
|
|
Walmart allows soem departments to be ____ in order to push out other competitors
|
unprofitable
-b/c such diverse products
"we say we sell for less, which means if a competitor's
|
|
examples of specialty divisions of walmart:
|
-tire & lube express
-Wal-mart optical
-" " pharmacy
-" " vacations
-" " connect
-" " used fixture auctions
|
|
2003 german high court ruling
|
-walmart's low cost pricing strategy "undermined competition" and ordered them to raise prices- walmart sold all stores in germany
|
|
an economic "rule of thumb" is that "market distribution" occurs when:
|
four firms control roughly 40% or more of any market
-CR4 ratio
|
|
what are the top 5 countries in terms of supermarket concentration?
|
australia, new zealand, finland, norway, and sweden
-US 24th
|
|
"freedom for the pike is..."
|
death for the minnows
-positive vs. negative freedom
-both imply the need for state intervention to some degree
-a "free" market is a constrained market?
|
|
positive freedom
|
freedom to do something
|
|
negative freedom
|
freedom from something
|
|
americans today are twice as affluent as in the 1950's yet:
|
those saying they are "very happy" declined from 35% to 32%
-divorce rate doubled
-teen suicide rate tripled
-violent crime quadrupled
-more people than ever depressed
|
|
HDI- Human Development Index is based on:
|
-life expectancy (health)
-literacy rates (education)
-school enrollment rates (ed)
-GDP per capita (wealth)
|
|
The US has the ____ highest GDP per capita in the world; the question is, how well is the US using its income to bring about human development?
|
4th
|
|
The US ranks ___ in the United Nation Development Programme's HDI rankings
|
12th
|
|
a higher development index tends to result in:
|
a greater ecological footprint
|
|
genuine progress indicator
|
-GPI adjusts for certain factors (income distribution), adds certain others (value of household work & volunteer work) and subtracts others (costs of crime and pollution)
|
|
GDP doesn't measure progress; it measures:
|
economic activity
-we've tripled GDP, but GPI has remained flat
|
|
happy planet index:
|
-life expectancy
-life satisfaction
-ecological footprint
|
|
world bank
|
long term loans
|
|
International monetary fund
|
short term loans
-lending institutions
-get 3rd world country on your side (capitalism/ communism)
|
|
high levels of inequality create:
|
enormous inefficiencies in societies
|
|
equality ___ equity
|
does NOT equal
-sometimes unequal is more equitable than equal)
|
|
index of health and social problems is ___ correlated to income inequality
|
directly
|
|
UNICEF index of child well-being is ____ correlated to income inequality
|
inversely
|
|
index of women's status is ___ related to income inequality
|
negatively/inversely
|
|
percent of national income spent on foreign aid is ___ related to income inequality
|
inversely/negatively
|
|
percent of ppl w/ any mental illness is ___ related to income inequality
|
directly/positively
|
|
environmental compliance score is ___ related to income inequality
|
negatively/inversely
|
|
In 2007 the CEO of Walmart (H. Lee Scott) made ____ times more than the average full-time worker
|
1,314
-150 times more than a top-ranking US general & distinguished professor
|
|
Herman Daly:
|
factor of ten as an inequality ceiling
|
|
World Bank and the IMF :
|
"brentton woods" institutions
-structural adjustment (aka "shock therapy")
|
|
World Bank and the IMF encourage countries to:
|
-devalue their currency
-raise interest rates (to curb inflation)
-privatize public and social services
-lower wages
-reduce subsidies
-open their borders to foreign investors
|
|
the problems w/ inequality:
|
-poor become poorer, rich become richer
-causing social inequality to go up, not down (nat& internat.)
-Jobs created are low paying & unpleasant
(economic adjustment advances faster
then social adjustment)
-Profits go out of country to foreign
investors (does little to pay off these…
|
|
welfare economics
|
branch of microeconomics seeking to evaluate well-being
-reduce world to costs and benefits
-assess policies accordingly
|
|
One analysis calculates that the well-being of citizens in less affluent nations was ___ of the value of an Americancitizen.
|
1/2000
|
|
the chief economist for the World Bank, Lawrence Summers argues that:
|
the lower marginal cost of waste disposal in a poor country compared w/ the higher marginal cost of waste disposal in a waste-producing affluent country justifies the latter polluting the former
|
|
the memo further argued that the poorest countries of africa are vastly ___
|
underpolluted, as they are underutilizing what affluent countries desperately need, namely, waste sinks
|
|
In a famous essay titled The Rights of Statistical People, Lisa
Heinzerling puts this reality in plain sight:
|
it has become commonplace to argue that the people doing the harm should be allowed to act so long as it would cost more for them to stop doing
the harm than the harm is worth in monetary terms.
|
|
discounting
|
an economic technique to monetize future well-being thus making it comparable w/ well being today
|
|
an increment of value today is worth ____ than that same increment in the future
|
more
-at a 5 percent discount rate, one statistical death next year counts for more than a billion deaths in four hundred years
|
|
due to discounting, it is entirely possible to:
|
reject a policy option that may knowingly save the human race from extinction 100s of yrs from now on the basis that it lowers the well-being of some today
|
|
proponents
|
by maximizing present investments the future's benefits are maximized too- a type of "trickle forward" reasoning
-but: what are these benefits we're leaving the future?
|
|
according to eric neumayer:
|
future generations might be alright w/ the prospect of higher skin cancer rates; it depends on what they get in exchange for it
|
|
even pollution induced deformities are made to be alright, as:
|
deformities caused to future generations by our actions today can satisfactorily be discounted b/c the cost of care for those deformities is likely to go down
|
|
“The Tragedy of the Commons”:
|
And therein lays the tragedy: everyone acting in their own self-interests, when resources are shared and limited, will have catastrophic ends
freedom in a commons brings ruin to all"
|
|
Garret Hardin's classic essay from 1968:
|
"Tragedy" of the commons
|
|
one common critique leveled at Hardin is that:
|
he conflates common property and open access regimes
|
|
common property regimes are where:
|
the members of a clearly demarcated group have formal & informal ways of excluding nonmembers from using a resource
|
|
___ (including the classic cases of the open seas and the atmosphere) have long been considered in legal doctrine as involving no limits on who is authorized to use a resource
|
open access regimes
|
|
common property should not be mistaken to mean:
|
everyone's property
|
|
Elinor Ostrom, Political Economist (Political Scientist) Awarded the 2009 Nobel Memorial Prize in EconomicSciences for her:
|
analysis of economic governance (especially the commons)
|
|
it is concerning that resource privatization -one of Hardin's suggestions to avert the tragedy- may in fact:
|
be the reason for why the tragedy is playing out in some parts of the world
|
|
____ builds social capital, establishes "thick" social relationships, can can reign in selfish behavior
|
face to face
|
|
____ fosters the formation of group identity and reduces the likelihood of selfish behaviors
|
group communication
-When individuals are placed in a situation where they cannotcommunication with others they are more likely to act selfishly with regardto the use of shared resources
|
|
the birth of environmental justice
|
comes out of the civil rights movement of the 1970s (with some relationship w/ environmental movement
|
|
Environmental Justice includes, but is not limited to racial discrimination in:
|
• The enforcement of regulations and laws
• The deliberate targeting of communities of
color for toxic waste disposal and the siting
of polluting industries
• The history of excluding people of color
from the mainstream environmental groups,
decision making boards, commissions and
…
|
|
people of color are subjected to ___ in disproportionately higher numbers than other groups in society
|
environmental and health risks
|
|
poor communities are most often ______ from major sources of environmental contamination
|
downhill, downwind and downstream
-chicken and egg question
|
|
two types of environmental injustice:
|
international and global
|
|
international environmental justice
|
polluting industries moving around the global following the path of least political resistance
-our gains are other losses
|
|
global environmental justice
|
ex: climate change; people who don't have resources to adapt
|
|
what is the dark side of chocolate?
|
-cologne germany, chocolate convention
-coca comes from ivory coast, Africa
-Mali: where children said to be trafficked from to ivory coast
|
|
we have 2 consumer choices when dissatisfied:
|
exit or give voice (create social change)
|
|
since 2008 carrotmobs have spread to ___ other US cities and Finland and France
|
10
|
|
a generation ago the thought of the ___seemed absurd
|
non-market coordination of large groups of people from around the world for purposes of resource allocation
-transaction costs too great
-ad in the paper or fliers up
-even if someone would get back to you the chance of a successful transaction was low
-all changed: COLLABORATIVE CONS…
|
|
peer to peer renting
|
-Enable individuals to make use of all those underused goods we are all guilty of having by renting them to others which in turn keeps
those renters from purchasing the good new
|
|
It has been estimated that if the US shifted a mere ___ the country would cut CO2 emissions by roughly 2 percent (or 13 million tons) annually
|
fifth of its household spending from purchasing to renting
|
|
usedcardboardboxes.com
|
the business model: rescue boxes
-company guarantees the delivery of moving kits to any address in the continental US in two days or less
-metro: freecardboardboxes.com
|
|
car sharing: "low-car diet challenge"
|
Surveyed after the challenge. They reduced their
vehicle miles travelled by 66%, while increasing
the miles they walked and biked by 93 and 132%,
respectively. Almost half of the participants also
reported losing weight. And perhaps most
importantly, 61% said they planned to continue…
|
|
zip car
|
-Average car users save an estimated US$600 a month and reduce vehicle miles traveled by 44% when they switch to car sharing.
-makes you rethink if car is necessary for particular trip
|
|
The tentative early evidence suggests that collaborativeconsumption not only ___but also _____.
|
strengthens already existing (aka “strong”) ties but also
builds new (aka “weak”) ones between people with different backgrounds
|
|
what does Airbnb do?
|
it matches travelers looking for rooms w/ locals who possess extra space they are looking to rent
|
|
German car manufacturer Daimler views the transaction costs of using ____ as still too high
|
Zipcar
-needs to have reservations and a two way trip
|
|
____ is similar to Zipcar's, except it requires no reservation or a two-way trip
|
Car2Go
-mobile app allows you to locate nearest smart car, leave it at any destination for the next person
-has more than 275,000 customers
|
|
Daimler is also working on :
|
Car2Gether
-mobile app that matches local drivers w/ people in the neighborhood looking for a ride
-connect through fb, a little more personal
-you can rate people after
|
|
what does trustcloud do?
|
creates the equivalent of a sharing economy credit rating only for trust
-using proprietary algorithms, it measures ind.'s trustworthiness by analyzing transactions on the web while also drawing info from sites like fb, linkedin, twitter, and google
|
|
while "anyone can be a max murderer", you get a lot more indicators in ____ than you do in walking up to somebody in khakis and a crisp white shirt on the street
|
data exhaust
|
|
the global recession and the too-big-to-fail banking system have undermined trust toward this industry, opening the door to:
|
peer-to-peer lending sites like Lending Club and Zopa
-interest rates set by lenders competing for lowest rate or fixed by a third party
-default rate <.9%
|
|
the 20th century is referred to as ____, and the 21st century is referred to as _____
|
hyper consumption
collaborative consumption
|
|
what is TaskRabbit?
|
you bid for people to run errands for you
-75 requests/day to assemble Ikea furniture
|
|
important topics from "collaborative consumption" talk
|
-microentrepreneurs
-based on efficiency & trust
-peer to peer travel
-access over ownership-want stuff for its fxn, not the item itself
-idoling capacity- car sits idol 20hrs/day
-collaborative lifestyles
-reputation capital
|
|
uneconomic growth
|
growth that costs us more than it benefits us; makes us less well off
|
|
diminishing marginal utility
|
having more of something eventually provides less additional satisfaction
|
|
what are the five sociological mechanisms that have been linked to escalating levels of consumption?
|
-social comparison
-creation of self identity
-specialization
-sociotechnical systems
-planned obsolescence
|
|
conspicuous consumption
|
we consume to display to others our social power and status
|
|
pollution based racial discrimination goes by the name of ____
|
environmental racism
|
|
the term ___ has been used to describe the US gov'ts 20th century treatment of native americans
|
ecocide
|
|
economism refers to:
|
the act of reducing the world to economic dimensions
|
|
in response to the Great Depression, kellogg made his workforce of fifteen hundred go from a traditional eight-hour to a:
|
six-hour workday instead of laying off some 300 workers
|
|
The metales and derivados battery-recycling plant in Tijauana began:
|
smelting in 1972 to recover lead and copper from car batteries
-study of local water source found lead & cadmium levels 3000 & 1000 times higher
|
|
welfare economics
|
branch of microeconomics that seeks to evaluate well-being
|
|
the ___ is a core economic principle driving, and justifying, cost-benefit analyses and welfare economics
|
Pareto optimality standard
-deems a policy acceptable only if at least one ind. is better off w/ no ind.'s are made worse off
|
|
energy intensity
|
the amount of energy required to produce each unit of the world's economic output
|
|
carbon intensity
|
amount of CO2 emitted for each unit of economic output produced
|
|
natural capital are:
|
assets that are indispensable for human survival and economic activity provided by the ecosystem
-slow to recover or irreparable
-difficult to substitute one depleted or exhausted ecosystem service for another
|
|
decoupling
|
the ability for an economy to grow w/out corresponding increases in environmental pressure
|
|
right now ___ and ___ are tightly coupled; an increase in the former result sin a more or less proportional inc in the latter
|
economic output and material throughput
|
|
pigovian taxes
|
a tax levied on companies that pollute or create excess social costs
|
|
coase theorem
|
alleges that when property rights are involved, parties naturally gravitate toward the most efficient and mutually beneficial outcome
|
|
apolitical ecology
|
explanations do not fully account for the asymmetries in power tat first created it materially and then later define it as a problem
|
|
stricter environmental regulations are actually in the best interests of many firms and countries, as they provide these actors an important competitive advantage, which is known as:
|
the Porter Hypothesis
|
SOC 220:Exam 2