Lec 1

Question 1

Why study the History of Economic thoughts?

Answer 1

The main reason for studying the history of economic
thought is to question the claim that economic knowledge
is cumulative.

Question 2

It is the study of the origin and
development of
economic ideas and
their interrelations

Answer 2

The History of Economic Thought

Question 3

It is a body of knowledge made up
of different explanation about specific or
related phenomena.

Answer 3

Theory

Question 4

An explanation about how and why a
certain event occur.

Answer 4

Theory

Question 5

represents the way in
which economists conceptually organize
or model the interdependent
components of economic life including
production, consumption, incomes, prices,
employment, exports, imports, savings and
investment

Answer 5

Economic Theory

Question 6

A study on _____________ allow
us to gain an understanding of how an economy works; that is, what makes it hang together and function.

Answer 6

Economic Theories

Question 7

A study on economic theories
enhances ones understanding of contemporary ______________________?

Answer 7

economic thought

Question 8

The vast amount of analysis and
evidence which economists have
generated over the decades can
provide a _______________?

Answer 8

closer check on
irresponsible generalizations

Question 9

EVEN if all people are perfectly
well-informed on economic matters,
disagreements and conflicts would
continue because of different ideas,
for example about:

Answer 9

a)what is good and what is bad;
b)which good should be adopted and
which rejected;
c) What the priority of each goal
should be.

Question 10

Economic thought consists of both a ________ and a
_____________.

Answer 10

vision
formal theory

Question 11

It is the broad perception with which individuals look at the world?

Answer 11

Vision

Question 12

It comprises the specific models that
capture the vision.

Answer 12

theory

Question 13

During this time:
> There was little trade
> Most goods were produced for consumption in the community
> Money and credit not widely
used

Answer 13

A.D.1500–3000 B.C.

Question 14

During this time strong national status and
integrated national economies
had not yet evolved to a
considerable extent
- Nor had any schools of economic
thought been formed.

Answer 14

A.D.1500–3000 B.C.

Question 15

What are the Economic Conditions/Characteristics since 1500 A.D

Answer 15

• Highly divergent economic conditions from
  one time to another, and one place to
  another
• Trade was expanding rapidly because of
  geographical exploitation
• Money economy increasingly superceded
  the natural or self sufficient economy

Question 16

During this time National status and unified national
economies became a dominant force

Answer 16

Since 1500 A.D.

Question 17

During this time economic schools arose representing a
unified and systematic bodies of thought
and policy formulation

Answer 17

Since 1500 A.D.

Question 18

What are the five major questions in economic thought?

Answer 18

1. What are the historical background
   of the school;
2. What are the major tenets of the
   school;
3. Whom did the school benefit or seek
   to benefit;
4. How was the school valid, useful
   or correct in its time; and
5. Which tenets of the school
   become lasting contributions or
   contributions which have stood
   the test of time.