chapter 4 Flashcards
classical econ rawr (fav chapt//hardest chap)
the basis for classical economics
Self-regulating democracies and capitalistic market developments
is considered the Father of Economics
Adam Smith
He saw wealth in the great
variety of goods that people traded and consumed
Adam Smith
Smith viewed gold and silver as not having
an absolute value. Instead, there were commodities whose value rose and fell with ______________
supply and demand
It was self-regulating because
people produced according to what people would buy and people consumed according to what they wanted and could afford
Adam Smith, self regulating market
invisible hand was introduced by Adam Smith in his book ‘The Wealth of Nations’. He assumed that an economy can work well in a
free-market scenario where everyone
will work for his/her own interest
Adam smith provided the genesis for the concept of?
GDP = Gross Domestic Product
Smith used the example of the labor required to make a pin to illustrate the effectiveness
of this method.
Assembly Line Production Method
Founder of Modern Utilitarianism
Jeremy Bentham
an ethical theory holding that actions are morally right if they tend to
promote happiness or pleasure (and morally wrong if they tend to promote unhappiness or pain) among all those affected by them
Modern utilitarianism
Bentham figured prominently among the small number of men who became known
as
philosophical radicals
consumer theory is by?
Jeremy bentham
he is the father of modern contraceptives
reverend thomas robert malthus
“the end justify the means
jeremy bentham
states that the supply of food cannot keep up with the growth of the human population, inevitably resulting in disease, famine, war, and calamity
Malthusian trap
_____________ as contraceptives
moral restrains
happiness is the absence of pain
John Stuart Mill
Ideas of cooperatives
John Mill
a person can be indifferent and can also favor two products at once
John Stuart Mill
Axiom: Reality, we are more consistent. But in real world we become inconsistent because of?
Emotions
Thomas Malthus said more population = ?
lesser marginal output
was groomed from birth by his father to
become the ultimate Victorian intellectual and utilitarian reformer.
John Stuart Mill
holds that “happiness is the sole end of human action, and the promotion of it the test by which to judge of all human conduct”
John Stuart Mill
first developed a theory in 1817 to explain
the origin and nature of economic rent.
David Ricardo