Classical Economists
Adam Smith: "When the price of a commodity is neither more nor less than what is necessary to pay the rent of the land, the wages of labour, and the profits of the stock employed, the commodity is sold at what is called its _____ ______. "
What is natural price ?
Keynes argued that the Treaty of Versailles, 1919, was too economically __________ to Germany.
What is punitive?
What is harsh?
What is damaging?
The three economists who made economics less political, normative, and more based on mathematics
Who were William Stanley Jevons, Leon Walras and Carl Menger?
The theory of _____ _______ _________ holds that in order to make a profit, business owners have to pay workers something less than the value those workers add to the business's bottom line.
What is Surplus labor value?
The total amount of GDP per capita growth in Western Europe from 1000 to 1500 AD/CE has been estimated at around 80%. This is equivalent to the growth modern China experienced over the course of ________ years.
What is, six years?
(2002-2008)
"The actual price at which a commodity is sold is called its____________." -- Adam Smith
What is the market price?
Keynes once said, ”in the ______________ _____________, we'll all be dead. Economists set themselves too easy, too useless a task, if in tempestuous seasons they can only tell us, that when the storm is long past, the ocean is flat again."
What is, long run?
Neoclassical economics contends that the rational, self maximizing interests of ________ spur prosperity and justify _________.
1. Who are individuals? 2. What is the free market?
With some caveats, Marx predicted that the demands of innovation -- for businesses to constantly update the newest production technology would cause a ____________ ___________ __ ____________.
Britain, Germany and the United States all industrialized with the following trade policy.
What are, protective tariffs for infant industries?
(3 Part answer): If Portugal needs 80 people to produce its wine, and 90 people to produce its cloth while Britain needs 120 people to produce wine and 100 people to produce cloth, Portugal has the _____________ in wine and cloth. Britain has the ________________ in cloth; Portugal has the _______________ in wine.
1. What is the absolute advantage in wine and cloth?
2. What is the comparative advantage in cloth?
3. What is the comparative advantage in wine?
Whereas Neoclassical economics held that unemployment in a downturn was caused by worker's unwillingness to accept lower wages, Keynesian theory held that it was mainly caused by _____________.
What is, a lack of effectual demand?
What is, overproduction?
Austrian economists argue against government intervention on the grounds that markets are too __________ for any official to understand them.
What is, complicated?
Marx called the 'capitalist class' the bourgeoisie, and the 'working class' the _________.
What is, proletariat?
Radar, the internet and a whole host of other inventions were created by __________ _______ ___ __________ spending.
The peril of population growth outpacing/exceeding food production.
What is the Malthusian trap?
The__________ _________ effect measures the way that money in one person's pocket stimulates growth as it changes hands.
What is, the multiplier effect?
While neoclassical economists, especially the monetarists, support a government monopoly over the money supply, Austrian economists favor ___________.
What is, private mints/banks controlling the money supply? What is, the gold standard?
Marx and Engels believed in these stages of historical development:
1. primitive communism
2. slave society
3. _________
4. __________
5. __________
6. stateless, global communism
What are, Feudalism, Capitalism, and Socialism?
GDP growth rates were higher in Western Europe, Latin America, the United States and Africa from the 1950s-1970s than during the _____________.
What are, the 1980s-1990s.
Fairness, certainty, convenience and efficiency were ________________ of taxation.
What are, Adam Smith's four principles of taxation?
Keynesian deficit spending is a countercyclical response to an economic downturn. When the economy is on a better footing, Keynesian theory recommends ___________.
What is, a balanced budget or budgetary surplus?
1. The most important unit of Neoclassical economic analysis is not a social class but rather the ____________. 2. ____________, not production, is the primary focus of Neoclassical economics.
1. What is individual? What is household?
2. What is exchange?
Name 1. one prediction that Marx made that has not happened, and 2. one prediction made by Marx that has.
1. What is the collapse of the Capitalist System,
2. What are periodic bouts of instability in the Capitalist system?
The Volker shock which began raising interest rates happened in this year, in response to what phenomenon.
What is, 1979?
What is, stagflation?