Physiocracy Flashcards
This happened at the decline of the western part of the Roman Empire
Feudalism
T OR F
The Catholic Church had the largest ownership of land during the middle ages
TRUE
What century is characterized by
- encolsure movement
- arabs and vikings
-commercial cities and commercial law - master craftsmen
15th century
What century is characterized by
- merchant capitalist and handicraft type of industry
- putting out system
16th century
This is an opposition to the principles of mercantilism, founded in 18th century France
Physiocracy
It is greek for “government of nature”
Physiocracy
Characterized by a belief that government policy should not interfere with the operation of natural economic laws
Physiocracy
What are the five distinct features of Physiocracy? (MPDWR)
minimal
private
diminishing
working capital
reinvestment
Where did the term laissez fair likely originate?
In a meeting around 1681 between jean-baptiste and french businessmen headed by M. Le Gendre
Le Gendre replied Kaussez-nous faire meaning?
Leave it to us
Was a Scotish Enlightenment Philosopher with classical economics as one of main interests
David Hume
In contrast to Locke, Hume believed that?
Private property was not a natural right because resources were limited.
He believed in an unequal distribution of property, for perfect equality would destroy the ideas of thrift and industry.
David Hume
Was an Anglo-Dutch Philosopher, political economist, and satirist in which his main thesis was that the action of men cannot be divided into lower and higher
Bernard Mandenville
T OR F
Mandeville explained that vices which alone, by means of inventions and the circulation of capital (economics) in connection with luxurious living, stimulate society into action and progress
TRUE
Teacher of Adam Smith at Glasglow College that was considered as the end of a long tradition of thought on economics as household or family management
Francis Hutcheson
Frenchman reputed to have asked why it was so hard to lassiez faire, laissez passer, advocating free enterprise and free trade
Vincent de Gournay
Believed that trade and industry were not sources of wealth, and agriculture surpluses (rent, wages, purchases) were the real economic movers
Tableua Dominique
Francois Quesnay
This states that regulation impedes the flow of income and taxes on the productive classes should be reduced, and for unproductive classes like landowners (high) since their luxury life impedes flow
Tableu Dominique
Developed Quesnay’s Theory that land is the only source of wealth (Reflexions sur la formation et la distribution des richesses, 1766)
Anne Robert Jacques Turgot
Turgot viewed the society in three classes, what are these?
- productive agri class
- salaried artisan class (classse stipendice)
- landowning class (classe disponible)
Argued that only the net product of land should be taxed and advocated the complete freedom of commerce and industry
Anne Robert Jacques Turgot
T OR F
As minister of finance, Anne Robert Jacques Turgot advocated for anti-mercantilist laws, and argued for a single tax on land and abolish all indirect taxes
Anne Robert Jacques Turgot
Irish-French economist and author of Essai sur La nature du Commerce en general (1730)
Richard Cantillon
Speculated and invested in John Law’s Missisipi Company - success came at a cost eventually led to his death in 1734
Cantillon
This is an essay on the nature of trade in general, and was considered by William James as the “cradle of political economy”
Essai sur La nature du Commerce en general (1730)
father of enterprise economics
William Cantillon
made frequent use of ceteris paribus and peppered with the world natural - imply cause and effect in economics and phenomena
Essai sur La nature du Commerce en general (1730)
states that wealth is nothing but the food conveniences and pleasures of life
Monetary Theory (Cantillon)
T OR F
Cantillon believed that market prices are not immediaetley decided by intrinsic value, but are derived from supply and demand.
T
T OR F
Cantillon believed that market prices tend towards the intrinsic value of a good, and orginiated the uniformtiy-of-profit-principle-changes
T
