Economic thinkers

Question 1

Explain Adam Smith view of self-intrest and the market

Answer 1

Adam Smith takes a capatalist viewpoint of self-intrest and the market as he believes by pursuing their own self-interest, individuals would be led ‘as by an invisible hand’, with resources allocated in such a way that is in the best interests of society.

Question 2

Explain Karl Marx’s view of capitalism

Answer 2

Karl Marx was critical of capatalism as he believed in a capatalist society the workers will be exploited which creates tension between capatalists and workers. He believed this would cause a fall in capatalism and a shift towards a socialst society.

Question 3

Explain John Maynard Keynes’ view of the role of the government

Answer 3

He beliebed the Government should solve ecconomic problems rather than wait for market forces to fix thungs over the long run. He beliveved the governement should use their ability to spend,tax and borrow to keep the ecconomy stable and growing.

Question 4

Explain Friedrich Hayek’s view of socialism

Answer 4

He believed socialsim required central economic planning. He also was critical of socialism and command markets as he claimes a consumer wil have the most accurate knowledge of their own tastes and so business decisions should be based around their wants and needs.

Question 5

Explain Friendrich Hayek’s view of the role of Government

Answer 5

Government intervention in the form of centralised planning stripped away indervidual liberties.