Classical School of Economics Quiz

15 Questions

According to the passage, which economists are considered as the pillars of classicism?

Adam Smith, Thomas Malthus, and John Stuart Mill

What does the term 'classic' refer to in the economic literature according to the passage?

The economic writings of Adam Smith and J.S. Mill

Which economists are associated with the classical school of thought according to the passage?

Adam Smith, Ricardo, Malthus, and J.S. Mill

Who is regarded as the Father and leader of the British classical school according to the passage?

Adam Smith

What is the time period for which the term 'classical school' refers to according to the passage?

1750-1850

What are the three meanings conveyed by the word 'classic' in economic literature according to the passage?

Teachings of Adam Smith, teachings of Marshall and his followers, original work that went before

According to the passage, the classical economists believed in:

Market economy based on perfect computation

What is the significance of Adam Smith in the history of economic thought?

He is regarded as the founder of modern economics and systematic economic thinking

What was the classical economists' view on the role of the government?

Government should govern least, following laissez faire

According to the passage, what did classical economists assume about the economy?

Full employment level would exist

What did classical economists emphasize about economic laws?

The universality of economic laws

Who is regarded as the 'father of Political Economy'?

Adam Smith

What was the approach of classical economists towards economic growth and development?

They paid attention to it and were the first to do so

Study Notes

Pillars of Classicism

Adam Smith, David Ricardo, Thomas Malthus, and John Stuart Mill are considered the pillars of classicism.

Definition of 'Classic'

In economic literature, the term 'classic' refers to a set of economic ideas and theories developed during the 18th and 19th centuries.

Classical School of Thought

Adam Smith, David Ricardo, Thomas Malthus, and John Stuart Mill are associated with the classical school of thought.

Father of the British Classical School

Adam Smith is regarded as the Father and leader of the British classical school.

Time Period of the Classical School

The term 'classical school' refers to the period from 1776 to 1848.

Meanings of 'Classic' in Economic Literature

The word 'classic' in economic literature conveys three meanings: • A set of economic ideas and theories developed during the 18th and 19th centuries. • A sense of excellence and timelessness. • A particular approach to economic analysis.

Beliefs of Classical Economists

Classical economists believed in the concept of laissez-faire, which means minimal government intervention in the economy.
They believed that economic laws are natural and universal, and that the economy has a natural tendency towards full employment.

Significance of Adam Smith

Adam Smith is significant in the history of economic thought because of his contribution to the development of modern economic theory.

Role of Government

Classical economists believed that the government should have a minimal role in the economy, and that its primary function is to protect private property and maintain law and order.

Assumptions of Classical Economists

Classical economists assumed that the economy is always at full employment, and that there is a natural tendency towards full employment.

Emphasis on Economic Laws

Classical economists emphasized that economic laws are natural and universal, and that they can be discovered through observation and deduction.

Father of Political Economy

Adam Smith is regarded as the 'father of Political Economy'.

Approach to Economic Growth and Development

Classical economists approached economic growth and development through the concept of laissez-faire, which means minimal government intervention in the economy.