Economic Philosopher/Philosophies

Question 1

Adam Smith

Answer 1

• Wrote ‘Wealth of Nations’ (1776)
• Division of labor
• Defends free market – little government regulation
• When people freely follow their own self interest, society benefits – INVISIBLE HAND

Question 2

Jean-Baptiste Say

Answer 2

• Products are paid for with products (trade)
• Savings = investment
• Glut (overproduction) unlikely to occur

Question 3

Say’s Law (Jean-Baptiste Say)

Answer 3

Supply creates its own demand (Keynesian criticism)

Question 4

Thomas Malthas

Answer 4

Wrote an essay on the ‘Principle of Population’ (1798)

• obsessed with population growth and income
• positive checks increase death rates
• preventative checks lower birth rates

Contrasted long run with short run
War + Epidemics help kill off extra people

Question 5

Jeremy Bentham

Answer 5

Utilitarianism

• policy should promote the greatest good for the greatest number
• developed felicific calculus
• supported interventionist macroeconomic policies later in life

Question 6

David Ricardo

Answer 6

Comparative Advantage: the country of individual with the lowest/lower comparative advantage