Classical Economics
When did classical economics start to develop and modernize?
1800s or the 19th Century
Who out of all these economists were a part of this era: William Jevons, Leon Walras, and Carl Merger
all of them.
Who was Karl Marx?
What does Keynesian economics refer to?
“Demand side” theory or “Demand management”
What is the law of supply and demand?
a concept that defines how a resource seller interacts with resource buyers.
Which one of these economists played a vital role in Classical economists: Karl Marx, John Maynard Keynes or John Baptiste Say?
John Baptiste Say
According to this era, how is the value of the product defined?
The values are based on the demand in the market.
What did Karl Marx develop?
communism.
What is the "general glut"
When consumers and businesses cannot buy out the total output of the country goods.
Was the approach to the political economy largely philosophical?
Yes
What was a major idea advocated and presented by Adam Smith regarding the intervention of the government in the economy?
Lassiez-Faire
What is the difference between classical and neo-classical economics?
Classical: value by supply; more philosophical
Neoclassical: subject: value by demand; more mathematical
What is on the left side of the political ideology spectrum?
communism.
What's an obligation for Keynes economics?
Active government policies(interventions)
What does "say's law" mean when it says "there cannot an overproduction of goods"?
It means that growth in the economy can be achieved by increased production, to increase demand.
What does Laissez-Faire mean?
Pronounce it for a brownie point.
"let do"
a reduction in intervention by the government in the economy
What theory did the neo-classical economists reject? and instead what theory did the present?
They rejected 'The Labour Theory'
and proposed 'Marginal Decision Making'
What is the difference between capitalism and communism?
it's not communism.
What would "general glut" result in?
The surplus will cause firms to lay off workers, leading to a decrease in purchasing power of households, resulting in a further fall in demand for goods and services.
Give an example of "The law of Diminishing Marginal Utility". *Cannot use the textbook example*
Why did John Baptiste Say say that there was no such thing as overproduction?
Because producing products build wealth to purchase new products creating demand/believed that all income was generated by the supply of a product, due to the fact that supply creates demand
Who was the first one to display a visual representation of supply and demand?
Alfred Marshal
Who presented Karl Marx in the presentation?
not communism.
What government policy did Keynes advocate during an economic recession?
(Expansionary)Fiscal policy
State the law and economist group supported the theory which said, "The value of the product is determined by labour costs of creating the specific good"
"Labour theory". Supported by Classical ecconomists