Economic History
Oikonomia
What is household management?
Production must precede consumption.
Say's Law (JB Say, late 1700s)
All other things equal
Ceteris paribus
PP is a moral right
What is the justice argument to PP?
Collective ownership, centralized planning, and price controls
What is Communism?
The economist is considered the founder of Austrian Economics when he wrote this book in what year?
Carl Menger wrote Principles of Economics in 1871.
Scarcity
The fundamental problem in economics.
The study of supply and demand and how individuals make decisions
Micro economics
The decision to do something is made at the next unit.
Decision are made at the margin.
I wash my own car, but not a rental car.
What is an example of Tragedy of the Commons?
Two events were associated with a dramatic increase in world GDP.
Publication of Wealth of Nations and Founding of America in 1776.
The worth of a product is determined by labor put into it.
What is the Labor Theory of Value?
A factual cause and effect explanation of economics.
What is Positive Economics?
FA Hayek said this about PP.
PP is the most important guarantee of freedom.
What are the 3 principles of the American Founding in regards to property?
1. A legal right to own property. 2. A right to sell property on one's own terms. 3. Sound money
This school of thought believed gold accumulation was the measure of national wealth and exports were more important than imports.
The Mercantilists
These are common in economic thinking
Economic fallacies
The study of human action.
What is Praxeology?
1. Uneasiness 2. Awareness of better circumstances 3. Belief in the ability to alleviate uneasiness
3 Steps of Human Action
Who said "Man has his first private property in his mind" and where did this person say it.
James Madison, On Property (1792)
He was an early French economist and thought money was non-neutral (i.e., people that receive new money first benefit more.)
Richard Cantillon (1600s)
The study of human behavior in the allocation of scarce resources.
The definition of economics.
The greater quantity of something the less valuable it becomes.
What is Diminishing Marginal Utility?
A property right that is more important than the right to possess property.
What is the right to acquire property?
This ancient thinker said PP led to virtue and was more productive.
Aristotle (in Politics, ~350 BC)