Books & Works
This book argues that the neoclassical theories of market self-correction were unrealistic and proposed government intervention to be necessary to stabilize the economy.
The General Theory
True or False: Hayek argued that the question facing society is not who should do the planning but whether or not planning should take place.
False.
This economist came up with the concept of creative destruction.
Joseph Schumpeter
Although models of monopolistic competition were not developed until the 1920s, duoplistic models were developed in the late 1800s by one of these French economists
Cournot or Bertrand
According to Harold Hotelling, in a market uniformly distributed population where should two identical firms locate?
Next to each other.
This article written by Ronald Coase theorizes that firms are organized to reduce transaction costs.
The Nature of the Firm
Keynes attributed the tendency of individuals in the economy to make decisions more on emotions and confidence in the economy rather than mathematical reasoning
Animal spirits
This economist demonstrated the ability of firms with market power to charge different prices to consumers depending on their willingness to pay as well as the concept of monopsony
Joan Robinson
This economist introduced basic models of competition with regard to geographic location. His models have been similarly used by others to develop models of competition in political platforms.
Hotelling
The Phillips Curve
John Maynard Keynes’s book lamented the financial burden that reparation payments placed on Germany after World Ward I
Although Marshall is attributed with developing partial equilibrium analysis, Walras is attributed with developing this concept referring to broader analysis across multiple markets.
General equilibrium
This economist pointed out the inconsistency between perfect competition and increasing returns to scale.
Saffra
Schumpeter believed that imperfect competition was bad for the economy and that perfect competition is the ideal.
False
This economist along with Anna Schwartz wrote The Monetary History of the United States. In 1968 during his presidential address before the American Economic Association he questioned the naive assumptions of Keynesian policies which would later be refuted by empirical realities.
Milton Friedman.
In this book, Schumpeter argues that the dynamic nature of capitalism and the features of democracy will eventually lead to socialism.
Socialism, Capitalism, and Democracy
This concept introduced by Veblen suggested that a significant motivation of consumer behavior is to demonstrate wealth or prestige to others
The economist who derived the optimal conditions of setting marginal rate of substitution equal to the marginal rate of transformation
Edgeworth
This economist argued that in oligopolistic competition, it is optimal to compete on quantity rather than price.
Cournot
The belief that individuals in the economy based expectations on the future primarily on previous experience is known as adapative expectations. Robert Lucas developed another concept that indicates that individual based decisions on information currently available to them. Name this concept.
Rational expectations
This book simultaneously contributed to theory of imperfect competition by reintroducing Cournot’s concept of marginal revenue and refining Pigou’s notion of price discrimination
Economics of Imperfect Competition
The empirical manifestation of this concept in the 1970s placed significant doubt on the underlying assumptions of Keynesian models
Stagflation
Developed the Edgeworth Box to analyze issues related to welfare economics
Pareto
Cournot models would later be used by this economist to demonstrate how firms determine production decisions conditional on the expected behavior of competitors which are also conditional on their competitors' expectations on their behavior. The resulting equilibrium is named after this economist who is also the protaginist of and Academy Award Winning movie starring Russell Crowe and Jennifer Connelly.
John Nash
Although this economist is attributed with being one of the founders of neoclassical economics, he is also claimed as the founder of the Austrian school which questions many of the neoclassical claims.
Carl Menger