economists Flashcards
adam smith
neoclassical
The Invisible Hand: Markets function best when individuals pursue their own self-interest, leading to overall economic benefits.
Division of Labor: Specialization increases productivity and efficiency.
Laissez-Faire Economics: Limited government intervention leads to economic prosperity.
david ricardo
Comparative Advantage: Countries should specialize in producing goods they are relatively more efficient at, leading to mutual benefits from trade.
Labor Theory of Value: The value of goods is largely determined by labor input.
Ricardian Equivalence: Suggests that government debt does not affect total demand since people anticipate higher taxes in the future
john stuart mill
Harm Principle: Government should intervene only to prevent harm to others.
Utilitarianism: Economic policies should maximize happiness and social welfare.
Progressive Taxation: Higher taxes on the wealthy help reduce inequality.
alfred marshall
Consumers and firms make decisions based on marginal cost and benefit.
john maynard keynes
Demand-Side Economics: Recessions occur due to insufficient demand, requiring government intervention.
Multiplier Effect: Government spending increases total economic output by more than the initial investment.
Against Laissez-Faire: Believed free markets alone could not ensure full employment.
paul samuelson
Synthesis of Keynesian and Classical Economics: Balanced free markets with government intervention when necessary.
milton friedman
Monetarism: Inflation is caused by excessive money supply growth.
Natural Rate of Unemployment: Trying to push unemployment below this level causes inflation.
Criticized Keynesianism: Believed government intervention often worsened economic problems.
amartya sen
Economic development should be measured by freedoms and opportunities, not just GDP.
Development should focus on expanding individual freedoms.
Human Development Index (HDI)
joseph stiglitz
Unregulated globalization exacerbates inequality
