Austrian economics Flashcards
Introduction to Austrian Economics
What is Austrian economics?
Austrian economics is a school of economic thought that emphasizes individualism
Who are some key figures in Austrian economics?
Key figures in Austrian economics include Ludwig von Mises
What is the Austrian business cycle theory?
The Austrian business cycle theory explains economic cycles as a result of monetary interventions
How does Austrian economics differ from other economic schools?
Austrian economics differs from other schools by its emphasis on methodological individualism
What is the role of government in Austrian economics?
Austrian economics generally advocates for limited government intervention in the economy
Explain the concept of time preference in Austrian economics.
Time preference is the idea that individuals value present goods more than future goods
What is the Austrian view on inflation?
Austrian economists view inflation as primarily a monetary phenomenon caused by an increase in the money supply
How does Austrian economics analyze entrepreneurship?
Austrian economics recognizes entrepreneurship as a driving force in the market
What is the Austrian perspective on government intervention in markets?
Austrian economists generally argue against extensive government intervention in markets
How does Austrian economics explain the role of prices in the market?
Prices
What is the subjective theory of value in Austrian economics?
The subjective theory of value posits that the value of a good is determined by the individual’s subjective preferences and utility rather than any inherent qualities of the good itself.
Can you provide examples of spontaneous order in the economy according to Austrian economics?
Examples of spontaneous order in the economy include the emergence of money
How does Austrian economics approach the study of human action?
Austrian economics views human action as purposeful behavior driven by individual goals and subjective preferences. It emphasizes the understanding of the choices individuals make in pursuit of their ends.
What is the Austrian perspective on the gold standard?
Austrian economists often support the gold standard as a monetary system that limits inflationary pressures and provides a stable framework for economic transactions.
How does the Austrian school analyze the role of interest rates?
Austrian economics sees interest rates as a reflection of time preference and the intertemporal allocation of resources. Central bank manipulation of interest rates is viewed critically for its potential to disrupt this natural process.
What is the Austrian view on central banking?
Many Austrian economists are critical of central banking
How does Austrian economics explain the boom and bust cycles?
According to Austrian business cycle theory
What is the Austrian perspective on income distribution?
Austrian economists generally focus on the process of wealth creation through voluntary exchange rather than on income distribution. They argue that a free-market system naturally rewards individuals based on their contributions to satisfying consumer demands.
How does Austrian economics view government regulations?
Austrian economics tends to be skeptical of excessive government regulations
What role does information play in Austrian economics?
Information is crucial in Austrian economics
How does Austrian economics address the issue of economic calculation?
Austrian economists emphasize the role of prices in economic calculation. They argue that without a functioning price system
What is the Austrian view on monopoly and competition?
Austrian economics generally supports free competition and is critical of monopolies that arise through government intervention or barriers to entry. It views competition as a dynamic process that benefits consumers by fostering innovation and efficiency.
What is the Austrian perspective on the role of knowledge in the economy?
Austrian economics emphasizes the role of tacit knowledge and subjective perceptions in economic decision-making. It argues that individuals
What is the Austrian view on trade and globalization?
Austrian economics generally supports free trade and globalization
