Important Figures
Which classical thinker was inspired by Adam Smith (was friends with James Mill and Thomas Malthus) and argued that raising tariffs on grain imports decreased the profits of manufactures therefore, is anti-protectionist.
David Ricardo
What concept describes the free and unrestrained market forces of demand and supply.
The Invisible Hand
This tariff was put in place from 1815-1846 in the U.K. as a protectionist measure for English farmers against foreign imports (of grain)
One of the main tenets of this economic school is allowing individuals to compete freely or otherwise known as
Free Competition
Who did this economic school seek to benefit?
Everyone (certainly laborers and middle class workers)
Which Scottish classical thinker is famously known for furthering empiricism, skepticism, and naturalism?
David Hume
What law states that if an investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.
The Law of Diminishing Returns
The Industrial Revolution
Advocated for free trade & globalization, the opposite of which is a completely economic self-sufficient country otherwise known as an .... (hint: the closest modern day example would be North Korea)
Autarky
This doctrine promotes self-centered economic activity and promotes the idea that actions are right if they are done in one's best interest
Utilitarianism
Which classical thinker wrote On Liberty - advocating for limited govt. powers and increased individual freedoms/privacy?
John Stuart Mill
What French term (used by physiocrats) means "leave it alone"
Laissez Faire
Which famous famine occurred to which population, confirming (to Malthus) the population theory
The Irish Potato Famine
This school recognized that for people to attain wealth, other people must (blank) on behalf of that success
Advocated against protectionist policies.... What are 3 economic examples of these policies.
Which classical thinker promoted little govt. intervention, desired lifting restraints on businesses, and promoted say's law (wherein production is the key to economic growth and the govt.'s policy should encourage production)
Jean Baptiste Say
This concept describes the ability of someone to carry out a specific economic activity more efficiently than another activity
What famous women's movement was growing momentum and advocating for equality between the genders?
The Suffrage Movement
True or False: This school wholeheartedly believed that the government is wasteful, corrupt, and inefficient?
(Bonus: This school believed that the government is the grantors of what?)
(monopoly)
Advocated for free trade, the invisible hand, and what kind of markets? (hint: broad term - what does the invisible hand inherently do?)
Self-Adjusting Markets
Which classical thinker wrote An Outline of the Science of Political Economy (1836), and advanced the abstinence theory of profits?
Nassau William Senior
What famous fable explains the idea that pursuit of self-interest generates social prosperity (hint: through a common insect)
The Fable of the Bees
Furthermore, which classical economist was the biggest proponent of women's rights and advocated for legal reform?
Marquis de Condorcet
What concept explains the forces determining the prices of final goods and services in retail markets are closely connected to the forces determining the prices of the various factors of production
Functional Distribution
GDP, Child- mortality rate, and CPI