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20 Cards in this Set
- Front
- Back
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Nationalism
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One's own country should promote exports and accumulate wealth at the expense of its neighbors
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Lasting Contributions of Classical School
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Enforcing Property Rights
National Defense Public Education |
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Scientific Revolution
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Society free to follow the natural law of self interrest
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Lasting contributions of Socialism
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Neo-Classical School
Democratic Socialist Helped Capitalism get rid of rough edges More humane conditions for workers |
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Major Tenets of Classical School
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Minimal government involvement
Self interest Harmony of interest |
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Role of money in the mercantilist era
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Money needed to keep the same output of volume
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Industrial Revolution
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Developed in England led to increased emphasis on the industrial aspect of economic life
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Lasting Contributions from mercantilists
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Emphasizing the importance of international trade
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Mercantilist Era
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Gold & Silver
Nationalism Colonization & Monopolization Strong Central Government |
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How did the scientific revolution affect the classical school
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Justified property income and that rent interest and profits are just rewards for the ownership
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Smiths views on money in the economy
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Money is vital means of payment
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Marxian
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Exploiting working class
Constant class struggle Private propery is consumer goods allowed capital and land owned by government |
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Syndicalism
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New society emerges
Peopole are self less No government No personal belingings |
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Harmony of Interest
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There is an invisible hand that channels self interest behavior in such a way that socail good emerges
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Communism
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Rejected parliament & military
One large union Workers use general strike as wepon |
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Public policy implication of income distribution
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Not always best to have redistribution because less incentives to become rich
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Perfect Competition
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Minimal government
Large number of buyers and sellers Easy entry Makes a profit |
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Strong Central Government
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Needs to promote mercantilist goals
required to enforce uniform natonal regulation |
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Lorenz Curve
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Closer the curve the more income is distributed, the further away the less equal income is distributed
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Monopoly
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One Seller
Barriers to entry Profit Maximization No substitution |
