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Questions and Answers
Which economic school was directly opposed to the ideas of the Physiocrats?
Which economic school was directly opposed to the ideas of the Physiocrats?
Classicism viewed the Physiocrats as antagonistic.
Classicism viewed the Physiocrats as antagonistic.
False
Name two key economists associated with Mercantilism.
Name two key economists associated with Mercantilism.
Mun and Colbert
The primary reason for studying economic theory is to understand how an ______ functions.
The primary reason for studying economic theory is to understand how an ______ functions.
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Match the economic school with the respective key economists:
Match the economic school with the respective key economists:
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What is one tool that economic theory provides to societies?
What is one tool that economic theory provides to societies?
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Studying the history of economic thought does not enhance the understanding of contemporary economic issues.
Studying the history of economic thought does not enhance the understanding of contemporary economic issues.
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Why is it important to study the history of economic thought?
Why is it important to study the history of economic thought?
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What does the term 'economics' derive from?
What does the term 'economics' derive from?
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According to Aristotle, acquiring necessities for survival is considered unnatural.
According to Aristotle, acquiring necessities for survival is considered unnatural.
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Who is known for their idea of a just price?
Who is known for their idea of a just price?
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In the period before A.D. 1500, most goods were produced for ______ in the community that produced them.
In the period before A.D. 1500, most goods were produced for ______ in the community that produced them.
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Match the following economists or philosophers with their contributions:
Match the following economists or philosophers with their contributions:
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What significant shift occurred after the 1500s regarding trade?
What significant shift occurred after the 1500s regarding trade?
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The 'age of political economy' began to emerge before the 1500s.
The 'age of political economy' began to emerge before the 1500s.
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The period before A.D. 1500 is noted for having little ______.
The period before A.D. 1500 is noted for having little ______.
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Study Notes
Economic Thought Through History
- Economics originated from the ancient Greek word oeconomicus, meaning "management of the household."
- Aristotle (384-322 BCE) distinguished between "natural" and "unnatural" means of acquiring resources. Natural acquisition focused on survival needs (food, shelter), while unnatural acquisition involved unnecessary desires (luxury goods).
- Plato (427-347 BCE) advocated for human specialization within a city-state, foreshadowing ideas of efficiency and division of labor.
- The Bible included economic ideas, including critiques of interest-based lending.
- The Middle Ages saw St. Thomas Aquinas promote the concept of a "just price," where both buyer and seller feel fairly compensated.
- Economic thought differed significantly before 1500 compared to the period after. Before 1500, trade was limited, goods were primarily produced locally, and money/credit were less utilized.
- After 1500, global exploration spurred rapid market expansion and trade.
- This shift from self-sufficiency to money-based exchange led to the rise of structured economic theories and policies.
- The 1500s saw the rise of political economy over moral philosophy, aiming to bridge economic and political thought.
- Economic theories began to organize into comprehensive systems.
Key Schools of Economic Thought
- Mercantilism, Physiocrats, Classicism, Marxism & Socialism were major schools of thought in economics.
- Economists associated with each school exemplified their thought (e.g. Adam Smith, David Ricardo, Karl Marx).
- Some schools were antagonistic to prior ones, while others built upon or superseded earlier theories, as shown in their time-based development.
- Different relationships existed (friendly, hostile, etc) between the schools of thought and/or their proponents.
Value of Studying Economic History
- Studying economic history allows for better understanding of contemporary economic thought. Historical lessons and errors serve as guides for future decisions.
- Historical economic thought provides frameworks for approaching economic goals (e.g. growth, employment, stability).
- Analyzing the evolution of economic thought helps understand past successes, failures, and how social and political contexts affect economic policies and decision-making.
- A study of past economic thought enriches understanding of the broader contexts like politics, art, philosophy, etc.
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Description
Explore the evolution of economic thought from ancient Greece to the Middle Ages. This quiz highlights the contributions of key philosophers like Aristotle and Plato, alongside significant economic concepts such as the 'just price' and the distinction between natural and unnatural acquisition. Understand how economic ideas transformed leading up to global exploration after 1500.
