Podcast
Questions and Answers
What is a key feature of the absolutist approach in economics?
What is a key feature of the absolutist approach in economics?
Which economist is known for synthesizing classical economics with marginalist thinking?
Which economist is known for synthesizing classical economics with marginalist thinking?
What concept did Alfred Marshall introduce into economic analysis?
What concept did Alfred Marshall introduce into economic analysis?
Which of the following statements about supply and demand in classical and marginalist economics is true?
Which of the following statements about supply and demand in classical and marginalist economics is true?
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What was one major characteristic of the classical school’s belief in international trade?
What was one major characteristic of the classical school’s belief in international trade?
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Which group did the mercantilist doctrine primarily benefit?
Which group did the mercantilist doctrine primarily benefit?
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What is a strength of generalizations made about successive economic schools?
What is a strength of generalizations made about successive economic schools?
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Which economic group benefited the most from Physiocrat ideas?
Which economic group benefited the most from Physiocrat ideas?
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What major historical event gave impetus to Keynes's ideas?
What major historical event gave impetus to Keynes's ideas?
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What significant change in the economy occurred after 1500?
What significant change in the economy occurred after 1500?
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Which economic concepts have become standard in contemporary economics due to their lasting significance?
Which economic concepts have become standard in contemporary economics due to their lasting significance?
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What is one reason given for studying the history of economic thought?
What is one reason given for studying the history of economic thought?
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Which of the following schools of thought emerged after the age of 'moral philosophy'?
Which of the following schools of thought emerged after the age of 'moral philosophy'?
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How can understanding past economic errors be beneficial for today's decision-makers?
How can understanding past economic errors be beneficial for today's decision-makers?
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What was a key characteristic of the transition to political economy?
What was a key characteristic of the transition to political economy?
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Which economists are most associated with Classicism?
Which economists are most associated with Classicism?
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Which statement reflects a common misconception about the relevance of historical economic ideas?
Which statement reflects a common misconception about the relevance of historical economic ideas?
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What is a key benefit of learning about unsolved problems in economics from the past?
What is a key benefit of learning about unsolved problems in economics from the past?
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What does the black arrow in the Time Scale of Economic Ideas represent?
What does the black arrow in the Time Scale of Economic Ideas represent?
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What is the primary focus of distributive justice as described by Aristotle?
What is the primary focus of distributive justice as described by Aristotle?
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Which of the following best describes a tenet of the school mentioned in the content?
Which of the following best describes a tenet of the school mentioned in the content?
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Which of the following schools of thought was rejected in favor of new theories?
Which of the following schools of thought was rejected in favor of new theories?
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In Aristotle's framework, what does rectificatory justice aim to achieve?
In Aristotle's framework, what does rectificatory justice aim to achieve?
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What factor contributed to the rapid expansion of markets and trade after 1500?
What factor contributed to the rapid expansion of markets and trade after 1500?
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What is a key characteristic of reciprocal justice according to Aristotle?
What is a key characteristic of reciprocal justice according to Aristotle?
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What does the statement 'contemporary theory wears the scars of yesterday’s problems' imply?
What does the statement 'contemporary theory wears the scars of yesterday’s problems' imply?
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Which of the following accurately describes the evolution of economic ideas over time?
Which of the following accurately describes the evolution of economic ideas over time?
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Which historical figure's ideas influenced Aristotle's concepts of justice?
Which historical figure's ideas influenced Aristotle's concepts of justice?
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Aristotle's upbringing was influenced by his parents' professions. What was their profession?
Aristotle's upbringing was influenced by his parents' professions. What was their profession?
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What leads to disputes in Aristotle's economic perspective?
What leads to disputes in Aristotle's economic perspective?
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How does Aristotle suggest one should determine how spoils of war should be shared?
How does Aristotle suggest one should determine how spoils of war should be shared?
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What is a significant characteristic of markets during Aristotle's era?
What is a significant characteristic of markets during Aristotle's era?
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What was one of Plato's significant contributions to philosophy?
What was one of Plato's significant contributions to philosophy?
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According to Plato, what is necessary to ensure honesty in public servants?
According to Plato, what is necessary to ensure honesty in public servants?
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How did Plato view the role of markets in his ideal state?
How did Plato view the role of markets in his ideal state?
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What concept did Plato recognize as essential for the development of cities (states)?
What concept did Plato recognize as essential for the development of cities (states)?
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Plato's philosophy originally touched on which of these branches?
Plato's philosophy originally touched on which of these branches?
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Which contemporary economists foreshadowed Plato's work on crime and politics?
Which contemporary economists foreshadowed Plato's work on crime and politics?
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What did Plato propose regarding the state of guardians in his ideal society?
What did Plato propose regarding the state of guardians in his ideal society?
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What did Aristotle propose as the just price within the range of possible prices in a voluntary exchange?
What did Aristotle propose as the just price within the range of possible prices in a voluntary exchange?
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What did Plato believe about consumer goods in his ideal socio-economic system?
What did Plato believe about consumer goods in his ideal socio-economic system?
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How did Aristotle view the acquisition of wealth through commerce and usury?
How did Aristotle view the acquisition of wealth through commerce and usury?
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What was Aristotle’s stance on the function of markets in society?
What was Aristotle’s stance on the function of markets in society?
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Which of the following is NOT one of the basic functions of money according to Aristotle?
Which of the following is NOT one of the basic functions of money according to Aristotle?
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What assumption did Aristotle make regarding socially acceptable consumption levels?
What assumption did Aristotle make regarding socially acceptable consumption levels?
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What role did Aristotle think the ruler had in relation to the metallic content of money?
What role did Aristotle think the ruler had in relation to the metallic content of money?
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What aspect of trade did Aristotle find suspicious?
What aspect of trade did Aristotle find suspicious?
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What did Aristotle believe about wealth coming from surplus products?
What did Aristotle believe about wealth coming from surplus products?
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Study Notes
Introduction to History of Economic Thought
- The course BEC2154 (History of Economic Thought) is a critical perspective, focusing on economic theory through the ages.
- The textbook is the third edition, authored by E.K. Hunt and Mark Lautzenheiser.
- The lectures cover weeks 1-2, beginning with an introduction to the rationale for studying the history of economic thought and then delving into ancient economic thought (Plato and Aristotle).
Why Study the History of Economic Thought?
- The history of economic thought examines different thinkers and theories, which evolved into political economy.
- It encompasses diverse schools of economic thought.
- Ancient Greek thinkers like Aristotle debated whether property should be privately or publicly held.
- History of economic thought is critical to understanding economic theory.
- Studying the historical development of economic thought aids understanding of economics, introducing important concepts of intellectual history.
Three General Beliefs about Economic Thought
- Economic theory and historical processes are interconnected.
- Social and economic change is continuous.
- Schools of thought in economics are concerned with social, political, historical, practical, and moral issues.
Further Explanation of the Interconnectedness of Theory and History
- Social theories are shaped by, and reflect, the social and economic realities that exist at any given moment.
- In turn, social and economic conditions are influenced by the theories that have shaped them.
- Consequently, economic theories and historical events are interconnected influences on each other.
The Continuity of Social and Economic Change
- Modern capitalism is essentially different from its 18th-century antecedent.
- The course aims to explicate contemporary economic theory through examining its theoretical predecessors.
School of Thoughts in Economics and Values
- Schools of economic thought integrate social, political, historical, practical, and moral elements
- Academic discourse highlights that science and subjective value judgments are not mutually exclusive.
- The assertion of being "value-free" in economic thought is not consistent with the historical realities of value systems in use.
- Economic concepts and ideas are shaped and enriched by value systems and are not solely objective scientific principles.
Main Periods in the History of Economics
- The course covers pre-Classical (up to 1776)
- Classical (1776-1870s)
- The Marxist conception of Socialism (1848-present)
- Marginal Revolution (1870s-1890s)
- Neoclassical (1890s to present)
- Keynesian Revolution (1936-1960s)
- Formalist Economics (1945-present)
Broad Generalizations about Schools of Economic Thought (Groupings)
- Schools of thought often fall into broad groupings like laissez-faire, government intervention, microeconomic, macroeconomic, deductive approach, and inductive approach.
Ancient Economic Thought: Hesiod
- Hesiod, from ancient Greece, is considered the first economist.
- He lived in the Greek agricultural community.
- Hesiod wrote about farming and daily life in the 8th century BC
Introduction to Economic Thought After 1500
- Trade and markets expanded rapidly after 1500.
- A money economy emerged and supplanted self-sufficient systems.
- National states grew to become significant economic forces.
Economic Thought in the 1500s
- "Political economy" became prevalent, replacing "moral philosophy"
- The organization of economic thought became more coherent and systematic.
A Time Scale of Economic Ideas
- Economic concepts follow a significant degree of continuity through time.
- In evaluating new frameworks, either an adaptation or criticism/replacement of former models occurs.
Major Economists of Different Schools
- Lists of key figures associated with mercantilism, physiocracy, classical economics, Marxism, and socialism are included in the text.
How to Analyze Historical Schools of Economic Thought
- Five questions underpin this method: 1. What was the historical background of the school? 2. What were the major tenets of the school? 3. Whom did the school benefit or seek to benefit? 4. How was the school valid, useful, or correct in its time? 5. Which tenets became lasting contributions?
- Understanding both the economic and social context of economic theories is key to understanding these theories
- The methods and approaches in these schools can be seen as either "relativist", or "absolutist"
- These schools can be seen as interconnected, with newer ideas emerging from prior ideas and frameworks.
Why Study the History of Economic Thought
- Studying the history improves understanding of contemporary economic thought.
- The theory of today can contain the errors and insights of yesteryear.
- The study of past successes, failures, and dead ends helps to resolve modern economic challenges and questions.
- Understanding economic history enables effective decision-making in the present, including personal, national, and local economic policies. Further, historical knowledge informs policy and decision-making.
Plato (Ancient Greek Philosopher)
- Plato lived in ancient Greece.
- Plato was a student of Socrates.
- Plato was Aristotle's teacher.
- Philosophies on incentive systems and human nature are central.
- He was a leader and founder of the Academy.
Aristotle (Ancient Greek Philosopher)
- Aristotle (Greek philosopher) made lasting contributions to many fields of knowledge.
- Aristotle lived from 384 to 322 B.C
- The concepts of distributive justice, corrective justice, and reciprocal justice are central to Aristotle's economic theories.
- Economic concepts and ethical considerations were intertwined.
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Description
This quiz covers the foundational concepts of the History of Economic Thought as outlined in the BEC2154 course. It explores key figures such as Plato and Aristotle, and examines the evolution of economic theory and its implications. Prepare to delve into the critical perspectives that shape modern economic understanding.
