Tracey Williams
ECON 214 Macroeconomics
Christian Ethics Project 1

1. What is the difference between self-interest and selfishness? Why is this distinction important when considering the competitive market economy as appropriate for a society?

There is no difference between self-interest and selfishness. Both terms promote the idea of individual advantages over the welfare of society.

2. Does your textbook present only positive economics and avoid any normative economics? If not, give some examples of normative issues covered in your textbook.

3. What did Adam Smith believes serves to curb self-interest in an economy?

Adam Smith believes competition serves as a curb on the excess of self-interest, which is also reinforced by the jurisprudence system. The market prices charged by a supplier of commodities and goods are constrained by his or her competition and the wages paid to laborers are bid up by competition amongst buyers.

4. What does it mean to seek the kingdom of God in a democratic capitalist economy? How can it be done?

Gods’ kingdom is righteousness, peace and joy in the Holy Spirit and was made available to us through Christ’s incarnation death and resurrection. Jesus doesn’t ask us to set aside our self-interest but instead make good investments instead of poor ones. The market system becomes more productive when it is undergirded by moral values such as trust, honesty, obligation and cooperation. The book goes on to discuss ethics and moral consensus is key factors in generating economic value. Without moral consensus, transaction costs would be so high that market exchange and economic growth would be impossible.