1. Schools of economic thought

Question 1

What is the orthodox mainstream view of economics based on?

Answer 1

The work of neoclassical economists

Question 2

What are alternatives to orthodoxy often known as?

Answer 2

Heterodox economics

Question 3

How did the orthodox school develop?

Answer 3

A linear progression from classical to neoclassical to mainstream

Question 4

What is theoretical monism?

Answer 4

Later schools of thought replacing earlier ones. A unified framework with methodological consistency whcih is reductionist regarding complex ideas into basic

Question 5

What is the heterodox view of

Question 6

What is the heterodox view of the progression of economic thought?

Answer 6

That schools of thought can coexist

Question 7

What is the heterodox perspective known as with regards to the progression of economic thought?

Answer 7

Theoretical pluralism

Question 8

What are the two main schools that emerged from classical economics?

Answer 8

• Marxian economics
• Neocassical economics

Question 9

List the main heterodox schools of thought

Answer 9

Institutional economics
Neo-Ricardian economics
Radical economics
Post-Keynesian economics
Austrian economics

Question 10

What was the prime interest of classical economics

Answer 10

prime focus was of interest is economic growth and development

Question 11

what did development depend on in the classical economic model

Answer 11

development depends on investment by profit recipients, surplus generates growth through investment

Question 12

what do profits depend on in classical economics

Answer 12

the factor distribution of income between profit rent and wages

Question 13

what ensures regular profits and investment in classical economics

Answer 13

a permanent surplus is present [implying market power], ensuring regular profits and investment

Question 14

Who are some of the key classical economists?

Answer 14

Smith, Ricardo, Mill

Question 15

What are some of the fundamental ideas of neoclassical economics?

Answer 15

Based on rational choice, market learning, utility functions and is individualistic

Question 16

What is the main concern of neoclassical economics?

Answer 16

Main concern is with resource allocation rather than economic growth or development

Question 17

How does neoclassical economics compare to other schools?

Answer 17

Theory begins with rational economic agents, not economics classes and relates agents to each other through market clearing equilibria. The stress is on micro rather than macro issues and it claims to have universal relevance

Question 18

How is mainstream economics charachterised?

Answer 18

Rests on neoclassical foundations (individualism, instrumental rationality, market clearing equilibrium) but adds various elaborations often taking the form of market imperfections and failures

Question 19

What is Marxian economics based on?

Answer 19

Classical foundations through Ricardo’s factor shares model, he sees this as a form of exploitation by capitalists. it adopts a historical and dialectical approach founded on class conflicts

Question 20

Who are the main proponents of Marxian economics?

Answer 20

Marx, Engels

Question 21

How are growth and development viewed by Marxian economics?

Answer 21

They are emphasised but subject to chronic instability and crises

Question 22

What is radical economics based on?

Answer 22

Mainly on modern developments of Marxian economics

Question 23

What are some examples of radical economics approaches?

Answer 23

Prominent examples are the monopoly capital approach, regulation theory and the social structures of accumulation model

Question 24

How does Post Keynesian economics differ from Keynesian economics?

Answer 24

It rejects the mainstream interpretations of Keynes namely New Keynesian economics

Question 25

Who are some of the most important proponents of Post Keynesian economics>

Answer 25

Robinson, Kaldor and Davidson

Question 26

What is neoricardian economics also often known as?

Answer 26

Serafina economics

Question 27

What is the main objective of Serafina(neo-Ricardian) economics?

Answer 27

To revive classical economics as an alternative to the neoclassical mainstream. Critical of many Marxian doctrines notably the labour theory of value

Question 28

What are the key ideas of institutional economics?

Answer 28

The importance of culture and institutions, the endogénesis y of preferences and the principle of cumulative causation. Suspicious of mathematical formalism in economics

Question 29

Summarise (neo)Austrian economics?

Answer 29

Individualistic, pro-markets, critical of mathematical utility, for more subjective such as the entrepreneurial spirit. Rebounded in the 20s and 40s to be more heterodox. They are the strongest critics of mathematical approaches as they argue it is far too mechanical

Question 30

What is the emphasis on in Austrian econom ics?

Answer 30

Sees entrepreneurship as the driving force behind economic growth and sees human subjectivity as the driving force behind economic growth. It argues that econometrics and the static mainstream focus on resource allocation is wrong