History Of Economic Thought Ii

Front 1

Jeremy Bentham

Back 1

Utilitarianism

Front 2

James Mill

Back 2

Liberalism

Front 3

Thomas Malthus

Back 3

Demography, population growth

Front 4

David Ricardo

Back 4

Comparative advantage, labor theory of value, law of diminishing returns, economic rent

Front 5

Nassau Senior

Back 5

Pointed out flaws of Ricardo; premises and terminology

Front 6

JB Say

Back 6

Say's Law " Supply creates its own demand"

Front 7

Robert Owen

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Utopian Socialism and cooperative movement

Front 8

Georg WF Hegel

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"Absolute idealism" - the dualisms of the mind and nature and subject and object are overcome

Front 9

Auguste Comte

Back 9

Altruism -opposite of selfishness

Front 10

Henri Saint-Simon

Back 10

Working class needs to be fulfilled to have effective society and economy

Front 11

Antoine August Cournot

Back 11

Cournot competition -compete on amount of output produced,

Oligopoly

Front 12

Charles Fourier

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Utopian Socialism

Front 13

Ludwig Feuerbach

Back 13

Influenced Marx, critique of christianity

Front 14

Karl Marx

Back 14

Human societies progress through class struggle- socialist

Front 15

John Stuart Mill

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Public/Private sphere, heirarchy of pleasures in utilitarianism, liberalism

Front 16

Johann Heinrich Von Thunen

Back 16

Basics of theory of marginal productivity using theory of rent( ricardo)

Front 17

Carl Menger

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Marginal Utility- rejected cost-of-production theories of value

Front 18

William Jevons

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Income distribution and in analysis of individuals' choices

Front 19

Vilfred Pareto

Back 19

Income Distribution and in analysis of individuals' choices

Front 20

Francis Edgewroth

Back 20

utility theory introduced indifference curve and edgeworth bod

Front 21

Leon Walras

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Marginal theory of value pioneered development of general equilibrium theory

Front 22

John Maynard Keynes

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Keynesian economics, demand is key variable governing economic activity, equilibrium driver is money market in keynes model is the interest rate

Front 23

Thorstein Veblen

Back 23

institutional economics conspicuous consuption

Front 24

Institutional Economics

Back 24

focuses on understanding the role of the evolutionary process and the role of institutions in shaping economic behaviour. Its original focus lay in Thorstein Veblen's instinct-oriented dichotomy between technology on the one side and the "ceremonial" sphere of society on the other

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conspicuous consumption

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consumers who buy expensive items to display wealth and income rather than to cover the real needs of the consumer.

Front 26

Classicism

Back 26

everyone pursue self interest and is free and open competition

Front 27

Austrianism

Back 27

concept of methodological individualism- thatsocial phenomena result from the motivations and actions of individuals.

Front 28

German Historicism

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relied on empirical observation and inductivereasoning, rather than deduction from theoretical propositions – max webereconomist

Front 29

Marginalism

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explain discrepancy in the value of goods andservices by reference to their secondary, or marginal, utility – explainsdifference in wages among essential and non-essential servies such as why airconditioner repair man makes more than childcare worker – Alfred marshall

Front 30

Scientific Socialism

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Friedrich Engles pioneered by Karl marx- basedon scientific method, in that theories are held to an empirical standard

Front 31

Evolutionary Economics

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Institutionalism- Thorstein Veblen- focuses onunderstanding role of evolutionary process and the role of institutions inshaping economic behavior.

Front 32

Altruism

Back 32

Auguste comte opposite of selfishness

Front 33

Marginal Utility

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marginalism explains choice with the hypothesisthat people decide whether to effect any given change based on the marginalutility of that change, with rival alternatives being chosen based upon whichhas the greatest marginal utility.

Front 34

Edgeworth Box

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general equilibrium theory, represents thecompetitive equilibrium of a simple system or a range of such outcomes thatsatisfy economic efficiency.

Front 35

Indifference Curve

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each point on the indifference curve renders thesame level of utility (satisfaction) for the customer

Front 36

Equimarginal principle Menger

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different courses of action should be pursuedupto the point where all the courses give equal marginal benefit per unit ofcost

Front 37

Equimarginal principle Jevons

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value of pleasure and pain varies according tofour circumstances; intensity, duration, certainty or undertainty, and nearnessor remoteness- time preference and anticipation permeate economic quantities

Front 38

Methodenstreit

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controversy between Austrian and german historical schools of thought concerned with the place of general theory in social science and the use of history in explaining the dynamics of human action

Front 39

Carl Menger

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Austrian school of thought - economics was the work of philosophical logic and could only ever be about developing rules from seeing human motives and social interaction as far too complex to be amenable to statistical analysis and purporting to deduce universally valid precepts form human actions.

Front 40

Germans in Methodenstreit

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economists could develop new and better sociallaws from the collection and study of statistics and historical materials

Front 41

Malthus on Population Growth

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Population Grows geometrically; food supplygrows arithmetically- 1. without population control population would bereduced by catastrophes.

Front 42

Stationary State

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steady state economy is stable in size andconsumption is at or below carrying capacity

Front 43

Says Law

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Supply Creates its own demand

Front 44

Corn Law

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Controversy Malthus Ricardo- Malthus wanted cornto not be imported to raise price, but ricardo ensured that less productivedomestic land would be harvested and rents would be driven up

Front 45

Ricardian Land Rent

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states that the rent of a land site is equal tothe economic advantage obtained by using the site in its most productive use,relative to the advantage obtained by using marginal land for the same purpose.

Front 46

Human Nature inherent in man or made for man?

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Marx –humans are capable of making or shapingtheir own nature to some extent.

Front 47

Hegelian dialectical process of history

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represents the manner in which the spiritdevelops gradually into its purest form, ultimately recognizing its ownessential freedom, “world history is thus the unfolding of spirit in time, asnature is the unfolding of the idea in space”

Front 48

Marxian dialectical materialism

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ideal is nothing else than the material worldreflected by the human mind, and translated into forms of thought.

Front 49

Labor theory of value

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economic value of a good or service isdetermined by the total amount of socially necessary labor required producingit rather than by the use of pleasure the owner receives. – marx

Front 50

Diamond-water paradox

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paradox of value is the apparent contradictionthat, although water is on the whole more useful, in terms of survival, thandiamonds, diamonds command higher price in market

Front 51

Intensive margin vs extensive margin

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ricardo extensive margin ( when more land wastaken into cultivation) intensive margin – rent arises because of diminishingreturns on land of the same quality

Front 52

Alienation of labor from its fruits

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describes the estrangement as a consequence ofliving in a society of stratified social classes- alienation form self is aconsequence of being a mechanistic partof a social class which condition estranges a person from their humanity

Front 53

Discretionary fiscal policy as economicstimulant

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Keynes- impossible to create automatic stabilizer for everypotential economic issue so discretionary policy allows policymakersflexibility

Front 54

Institutional econ

Back 54

Institutional econ focuses on understating roleof evolutionary process and the role of institutions in shaping economic behavior

Front 55

Evolutionary econ

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Veblen - Evolutionary economics analyses the unleashing of a process of technological and institutional innovation by generating and testing a diversity of ideas which discover and accumulate more survival value for the costs incurred than competing alternatives

Front 56

Pareto

Back 56

Pareto optimality