12 Questions
According to Adam Smith, how does the market mechanism coordinate the activities of economic actors?
By individual pursuit of self-interest
What did Karl Marx identify as the key driver of historical change in society?
Class struggle
Which Industrial Revolution wave was characterized by advancements in computers and partial automation?
Third IR
What did Thomas Malthus predict about income levels in relation to population growth?
Income will remain at subsistence level
Which concept did Adam Smith strongly support in relation to economic activity?
Division of labor and specialization
What was Karl Marx's view on the relationship between the working class and the capitalist class?
Exploitation of the working class by the capitalist class
What was one of the implications of 'Malthus's Law'?
Economies are trapped in a low-income cycle.
Why did Malthus suggest that unless there is technological improvement or an increase in resources, the population will tend to stay the same?
To explain the connection between resources and population dynamics.
What is the significance of labour-saving and energy intensive production methods that emerged in the 18th and 19th centuries?
They increased labour productivity and wage rates.
Why is it crucial for private property to be secure for capitalism to be dynamic?
Secure private property encourages innovation and investment.
What role did labour productivity play in escaping the Malthusian trap?
Labour productivity enabled temporary increases in living standards.
How did Malthus view subsistence levels during his time?
As living on the verge of starvation.
Learn about Adam Smith, the father of Economics, and his renowned book 'An Inquiry into the Nature and Causes of the Wealth of Nations'. Understand the concept of the market mechanism and the role of individuals pursuing self-interest in enhancing the social interest.
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