Basic Microeconomics Module 2 PDF

BASIC MICROECONOMICS Module 2 ANCIENT PERIOD 4TH CENTURY BC Full Name: Plato (Theory of Market) ECONOMIST PHILOSOPHER...

BASIC MICROECONOMICS Module 2 ANCIENT PERIOD 4TH CENTURY BC Full Name: Plato (Theory of Market) ECONOMIST PHILOSOPHER Born and Died: 428427 - 348/347 BC School of Economic Thought: Ancient Greek Philosophy History of economic thoughts Notable Economic Thought: Plato’s economic ideas were embedded in his broader philosophical theories. In “The Republic” History of economic thoughts refers to the study of how economic he discussed the division of labor, the concept of a just society, and ideas and theories have developed over time. It encompasses the the role of the state in regulating economic activities. evolution of economic thinking from ancient times to the present, Influenced by: Socrates examining the contributions of various economists, philosophers and Influences: Aristotle schools of thoughts to our understanding of economic processes, Western Philosophical and economic thought works and systems, and policies. Contributions: “The Republic” is one of Plato’s most important works, where he discussed the idea of a philosopher-king the KEY ASPECTS OF THE HISTORY OF ECONOMIC THOUGHT division of labor, and the communal ownership of resources, contributing to the foundations of economic thought. Mercantilism Period - The rise of mercantilism in Europe, emphasizing the accumulation of wealth, protectionism, and state Full Name: Aristotle intervention to achieve a favorite balance trade. Born and Died: 384 - 322 BC School of Economic Thought: Ancient Greek Philosophy Classical Period Notable Economic Thought: Aristotle’s work on economics Marxian Period focused on the natural and unnatural forms of wealth acquisition, the Neo-Classical Period ethics of trade, and the concept value. He distinguished between Keynesian Period “oikonomia” (household management) and “chrematistics” (wealth Modern Period acquisition) Influenced by: Scholastic economist, Thomas Aquinas, later economic and ethical theories Works and Contributions: In “Politics” and “Nicomachean Ethics” Aristotle discussed the importance of private property, the ethics of wealth accumulation, and the role of the state in regulating economic ADAM SMITH (refer to module 1 lols haha) life.  Household management (daily basis) and wealth acquisition Influenced by: Aristotle, Augustine of Hippo (develop asset) Influences: Scholastic economist, Catholic social teaching, natural Use value and exchange value law theory He believes in monopoly Works and Contributions: “Summa Theologica” is his most Paradoxo Value (mas mahal kapag di nakikita kahit saan like significant work, where he explored economic concepts such as the diamond) just price, usury, and the role of the state in economic matters, contributing to the development of economic ethics. Full Name: Xenophon of Athens Born and Died: 431 - 354 BC He is a priest School of Economic Thought: Ancient Greek Philosophy Contribution: The just price and lending and interest (kapag Notable Economic Thought: Xenophon wrote about the magpapautang ka dapat tama lang din ang interest) management of estates and the economy in his work Development of economic ethics “Oeconomicus”. He also explored the idea of leadership and the importance of efficiency and organization in managing resources. CLASSICAL PERIOD Influenced by: Socrates Influences: Later economic thought on household management and Full Name: Adam Smith statecraft Born and Died: 1723 - 1790 Works and Contributions: “Oeconomicus” and “Cyropaedia” are School of Economic Thought: Classical economics among his significant contributions, discussing the management of Notable Economic Thought: Adam Smith is known for the idea of households and leadership, which influenced later economic and the “Invisible hand” which describes how self-interest in a free political thought. market leads to economic prosperity. He emphasized the importance of free markets, division of labor, and limited government It focuses on leadership and importance of efficiency and intervention. organization in managing resources Influenced by: Francis Hutcheson, David Hume One famous book: Memorabilia Influences: David Ricardo, Karl Marx, Modern economic thought Works and Contributions: “The wealth of nations” (1776) is his MEDIEVAL PERIOD seminal work, where he laid the foundations of classical economics, Full Name: Saint Thomas Aquinas discussing the division of labor, free markets, and the role of Born and Died: 1225 - 1274 government in economic life. School of Economic Thought: Scholasticism Notable Economic Thought: Aquinas synthesized christian theology with Aristotelian Philosophy. He discussed the just price, the morality of trade, and the ethics of wealth. His work laid the foundation for later economic thought in the context of christian ethics. Full Name: David Ricardo Works and Contributions: “Principle of economics” (1890) is his Born and Died: 1772 - 1823 most influential work, where he introduced key concepts such as School of Economic Thought: Classical economics price elasticity, consumer surplus, and the theory of the firm, shaping Notable Economic Thought: Ricardo is known for his theory of the field of microeconomics. comparative advantage, which explains how nations benefit from trade by specializing in the production of goods in which they have a FATHER OF MICROECONOMICS relative efficiency. He also developed the labor theory of value and the theory of rent. Full Name: Carl Menger Influenced by: Adam Smith Born and Died: 1840 - 1921 Influences: John Stuart Mill, Karl Marx, Modern Trade Theory School of Economic Thought Austrian school of Economics : Works and Contributions: “Principles of Political Economy and Notable Economic Thought: Menger is one of the founders of the Taxation” (1817) is his most famous work, where he articulated the Austrian School of Economics and developed the theory of marginal theory of comparative advantage, the labor theory of value, and the utility. He emphasized the importance of subjective value in theory of rent. determining prices and the role of individual decision making in the economy. Labor theory of value and theory of rent Influenced by: None directly, as he as one of the founder of one Principles of political economy Austrian School Comparative advantage (Lack of other country, sustain ng Influences: Ludwig Von Mises, Friedrich Hayek, Austrian economics ibang country) Works and Contributions: “Principles of economics” (1871) is his most important work, where he introduced the concept of marginal utility and laid the foundation for the Austrian School of NEO-CLASSICAL PERIOD economics. Full Name: Alfred Marshall First Austrian Economist Born and Died: 1842 - 1924 Famous book: The principles of economics School of Economic Thought: Neoclassical economics He improved the Marginal Utility Notable Economic Thought: Marshall is credited with developing the supply and demand model, the concept of price elasticity, and the marginal utility theory. He helped formalize economics as a science and was instrumental in the development of microeconomics. Influenced by: John Stuart Mill, William Stanley Jevons Influences: John Maynard Keynes, Modern Microeconomics  MODERN PERIOD Full Name: John Maynard Keynes Full Name: Milton Friedman Born and Died: 1883 - 1946 Born and Died: 1912 - 2006 School of Economic Thought: Keynesian Economics School of Economic Thought: Chicago School of economics, Notable Economic Thought: Keynes revolutionized economics Monetarism with his ideas on government intervention in the economy. He Notable Economic Thought: Friedman is best known for his argued that during economic downturns, government spending advocacy of monetarism, which emphasizes the role of government should increase to boost demand and pull the economy out of in controlling the money supply to manage inflation. He was a strong recession, challenging the classical notion of self-regulating markets. proponent of free markets and minimal government intervention in Influenced by: Alfred Marshall, David Ricardo the economy. Influences: Post Keynesian Economics, MOdern Macroeconomic Influenced by: Irving Fisher, Friedrich Hayek policy Influences: Modern Monetarism, conservative economic policies, Works and Contributions: “The General Theory of Employment, Ronald Reagan, Margaret Thatcher Interest, and Money” (1936) is his most influential work, where he Works and Contributions: “A monetary History of the United laid the foundations of Keynesian economics, advocating for active States, 1867 - 1960 (co authored with Anna Schwartz) is one of government interventions to manage economic cycles. his most influential; works, where he argued that monetary policy should focus on controlling the money supply to achieve economic FATHER OR MACROECONOMICS stability. Famous book: “The General Theory of Employment, Interest, and Money” (1936) The government should control the economy, manage Consumer-Producer Cycle inflation