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History of Economic Thought
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History of Economic Thought
History of Economic Thought
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1
Question
What is the origin of the word 'Economics'?
Answer
The word 'Economics' comes from the ancient Greek word 'oeconomicus,' which meant management of the household.
2
Question
Who distinguished between natural and unnatural arts of acquisition in economic thinking?
Answer
Aristotle distinguished between natural and unnatural arts of acquisition.
3
Question
How did Aristotle define natural acquisition?
Answer
Aristotle thought that getting things you need to survive, like food and shelter, was natural, which could be done by farming, fishing, or hunting.
4
Question
What did Aristotle think about acquiring unnecessary goods?
Answer
Aristotle did not like it when people acquired things they didn't really need, like fancy clothes or expensive jewelry, as he thought it was unnatural and not a good use of resources.
5
Question
What did Plato write about regarding economics?
Answer
Plato wrote of the benefits of human specialization within the ideal city-state, suggesting that people focusing on their different skills could lead to better efficiency.
6
Question
What concept did Adam Smith introduce regarding work and efficiency?
Answer
Adam Smith talked about how dividing up work into smaller tasks, where people specialize, makes things more efficient.
7
Question
What does the Bible contain regarding economic practices?
Answer
The Bible contains several thoughts on economics, including those in opposition to lending at interest.
8
Question
What idea did St. Thomas Aquinas advance in the Middle Ages?
Answer
St. Thomas Aquinas advanced the idea of a just price, which is when both the buyer and seller feel they are getting a good deal without deception.
9
Question
How did trade differ before A.D. 1500 compared to after?
Answer
Before A.D. 1500, there was little trade, and most goods were produced for consumption within the community, while after, markets and trade expanded rapidly.
10
Question
What significant transition occurred in economies after 1500?
Answer
Societies shifted from relying on self-sufficiency to using money for trade, which led to the rise of organized economies.
11
Question
What marked the beginning of the age of political economy?
Answer
The age of political economy began to supplant the age of moral philosophy in the 1500s, as people began to focus on the connections between politics and economics.
12
Question
What does the Time Scale of Economic Ideas represent?
Answer
The Time Scale of Economic Ideas depicts the relations among different schools of thought in economics.
13
Question
Name two important economists associated with Mercantilism.
Answer
Mun and Colbert are two important economists associated with Mercantilism.
14
Question
Who are the key figures in Physiocracy?
Answer
Quesnay and Turgot are key figures in Physiocracy.
15
Question
List some prominent economists of Classicism.
Answer
Prominent economists of Classicism include Adam Smith, Ricardo, Malthus, Bentham, Say, and Mill.
16
Question
What does a black arrow in the Time Scale signify?
Answer
A black arrow shows that the latter group was antagonistic to or rose in opposition to the earlier group.
17
Question
What does a white arrow in the Time Scale signify?
Answer
A white arrow linking two rectangles shows that the latter group was generally friendly to the group from which it grew or that it superseded.
18
Question
What does a dashed arrow indicate in the Time Scale?
Answer
A dashed arrow indicates groups in which some contributors were friendly to predecessors, but others were antagonistic.
19
Question
What is one primary reason to study economic theory?
Answer
One primary reason to study economic theory is to gain an understanding of how an economy functions, exploring mechanisms like supply and demand, market equilibrium, inflation, unemployment, and economic growth.
20
Question
What tools does economic theory provide societies?
Answer
Economic theory provides tools and frameworks that help societies achieve their chosen economic goals, such as economic growth, full employment, price stability, and equitable distribution of income.
21
Question
Why is it important to study the history of economic thought?
Answer
Studying the history of economic thought enhances understanding of contemporary economic thought, allows for fewer errors in personal and national economic decisions, and provides perspective on past ideas and problems.
22
Question
How can studying the evolution of economic thought illuminate changes in other areas?
Answer
A study of the evolution of economic thought and the changing social background associated with it can illuminate changes in areas like politics, art, philosophy, and science.