Key economic thinkers Flashcards
1
Q
Who are the three main economic thinkers
A
- Adam Smith
- Fredrick Hayek
- Karl Marx
2
Q
Which economy did Karl Marx support
A
a command economy
3
Q
What were Karl Marx’s main beliefs
A
- thought capitalists exploited workers
- thought competition would cause firms to go bankrupt
- criticised capitalism and the free market
4
Q
What economy did Adam Smith support
A
the free market economy
5
Q
What were Adam Smiths main beliefs
A
- competition enables low costs
- specialisation and division of labour creates wealth
- self-interest objectives enable the best outcome for society
6
Q
What economy did Fredrick Hayed support
A
a free market economy
7
Q
What were Fredrick Hayek’s main beliefs
A
- resource allocation was based on consumers wants and needs.
- price movements will change firms demand and supply decisions
- the market will reflect decisions of a society
