Chapter 1 Flashcards
The period between 470 A.D. to 1453 A.D. covering about 1000 years is generally known in history as the?
Medieval Period or the Middle Ages
It is the most ill-defined period in the world history, and roughly it has been put between the years 400 A.D. to 1500 A.D
Medieval Period or the Middle Ages
Is an instructional treatise on efficient management and leadership authored
by Xenophon.
Oeconomicus
He was an Athenian historian, philosopher, and soldier
Xenophon
Pertains toa great age before the Middle Ages
Antiquity
The greeks had a _________ economy
“pre-market” economy
This economy is described as an economy with “products that are neither uniform, nor traded on organized exchanges, nor analyzed for their own sake.”
Pre-market Economy
Pre-market economy is also knowned as?
Closed Economy
A “premarket” economy is like a natural economy, where people exchange goods through a?_____________; and they produced only for?
Barter System, Domestic Consumption
___________ is regarded as the main objective of an individual. This is also the attainment
of maximum satisfaction.
Happiness
Household Management
Oikonomia
One who makes decision for the society
Authoritarian Ruler (Macro)
Each family was patriarchal and success-driven, which led to the development of the individual male citizen as a fundamental decision maker. This is the one who makes the decision in a household
Father
Is a method determining the morality of an action to measure the degree of happiness caused by the act.
Hedonic calculus of rational self-interest
The Greeks formalized the active and rational pursuit of pleasure and avoidance of pain in their doctrine of?
hedonism
holds that all human beings live in a world of
natural abundance
Oikonomia
holds that human beings live in a world where means are scarce
Contemporary Economics
The head of the Ancient Greek’s household was known as
Oikodesptes
Three major works of Xenophon
Oeconomicus, Ways and Means, Hiero
In this work of Xenophon, he discussed the organization and administration of private and public affairs
Oeconomicus
In this work, Xenophon prescribed a course on the economic revitalization
of Athens in the middle of the fourth century BC. Athens then was defeated in the social war and was in the face of financial ruin.
Ways and Means
from financial difficulty of ancient greeks during war times
ways and means
Diminishing Marginal Utility
Hiero
Consumer will never achieve full satisfaction
DMU
Efficient Management
Oeconomicus
Hedonism is by?
Jeremy Bentham
He was the founder of the Platonist school of thought, and the Academy, the first institution of higher learning in the Western world.
Plato
Founder of Political Economy
Plato
According to Plato, cities originated from?
exchange
these were the tokens of exchange in the market
Money
He believed that marketplace was not capable of self-regulation
Plato
Government issued currency backed with national reserves/gold we have
Fiat Money
is known in the field of economics for his theory of money.
Aristotle
Aristotle specified five properties or money:
durability, divisibility, convenience,
uniformity, and intrinsic value.
Aristotle favored the ?
mixed economy
an economy where economic decisions are made by both the government and the market.
Mixed Economy
he also favored private property for all classes because he believed that this will “…promote economic efficiency, engenders social peace, and encourages the development of moral character.
Aristotle
History of Chinese Economic Thought started way back during the
Eastern Chou Dynasty (771-249 BC)
The three writers in this golden age of Chinese philosophy
Confucianists, The Legalists, The Moists
He was a Chinese philosopher and politician of the Spring and Autumn period, he emphasized personal and governmental morality, correctness of social relationships, justice, kindness, and sincerity.
Confucius
should derive from people’s productive abilities and should be limited to one-tenth of the produce of the land;
Taxes
Government spending, which includes palace expenditures, should be adjusted to
government revenues, not the other way around
on of Confucius’ economic principles
The foremost obligation of the ruler is?
the well-being of the people
these philosophers are strict with the application of widely publicized laws.
The Legalists
advocated government by a system of laws that rigidly prescribed punishments and rewards for specific behaviors. They stressed the direction of all human activity toward the goal of increasing the power of the ruler and the state
The Legalists
“rejected Confucian methods of decentralization, moral suasion, and
personal virtue in favor of centralized state power and legal mechanisms of control. His followers, wrote on monetary and fiscal policies, government monopoly, price stabilization, population, agriculture, and commerce.”
Kuan Chung
This group of thinkers were led by Mo Ti
Moists
believed in a kind of universal brotherly love as an antidote to mankind’s natural inclinations towards selfishness and injustice
Mo Ti
The Muslims viewed economics as means to?
an end
Muslims believed in
homo islamic, not homo oeconomicus
is a Persian philosopher who was one of the most prominent and influential Muslim philosophers, theologians, jurists, and mystics, of Sunni Islam
Abu Hamid al -Ghazali
Ghazali made specific contributions to four major areas of economic thought:
(1) voluntary exchange and markets
(2) the nature of production
(3) money and interest
(4) public finance
Ghazali classifies his production
activities according to importance:
Primary Production - Agriculture
Secondary Production - Manufacturing
Tertiary Production - Services
For him, usury was wrong.
Abu Hamid al-Ghazali
was the economic organization in the Middle Ages
FEUDALISM
According to him, price varied with wants. He did not explain this but just made the connection between the two variables: “If the price exceeds the quantity of the value of the article, or the article exceeds the price, the equality of justice will be destroyed; just price of things consists of a certain estimate;”
Aquinas
argued that just price was a substitute for the unregulated, competitive, market price when markets had not yet reached the stage of development.
David Friedman
one seller, one buyer
bilateral monopoly
value is determined by the common need of something scarce; as long as there was abundance in the face of strong demand, indigentia would not raise price
Henry of Friemar
described poverty as a state in which someone does not have that which he desires, which means that indigentia could be applied to luxuries and necessities. This was
backed by ability to pay
Jean Buridan
focused on the scarcity and quality of human productive skills. This led him
to the theory of wage differentials
Gerald Odonis
The greek’s view of the world was _____, not ________
Anthropocentric, not Mechanistic
